India-Maldives trade records three-fold jump in last 8 years

New Delhi, Jan 1 (IANS) The bilateral trade between India and the Maldives has grown more than threefold over the last eight years, with India’s exports doubling to 680 million in FY 2024–25 and imports from the Maldives taking a huge 20-fold leap to $119 million.

Along with the rising flow of Indian tourists to the island nation, the economic-interdependence between the two countries has been steadily growing over the years.

Recently, India–Maldives relations have entered a renewed phase following Prime Minister Narendra Modi’s visit to the Maldives, during which eight key bilateral agreements were signed. The agreements cover debt relief, reducing the Maldives’ annual repayment burden by 40 per cent; a $565 million Line of Credit for infrastructure; UPI–RuPay integration; fisheries cooperation; housing projects; security assistance; climate resilience; and advancing FTA and investment treaty talks, according to an article published in the Maldives Insight news portal.

The report highlights that India’s exports, comprising petroleum products, pharmaceutical products, and food goods such as rice, fruits and vegetables, are economic necessities for the island nation. In addition, machinery, electrical equipment, and transport vehicles exported by India play an important role in meeting consumer demand in the Maldives.

While smaller in value, imports from the Maldives hold strategic and economic significance. India primarily imports fish and marine products.

The article states that tourism is the most visible and dynamic bridge between India and the Maldives. It points out that India has consistently ranked among the top countries for tourist arrivals in the Maldives, providing stability and resilience to the tourism-led economy, especially when arrivals from Europe or East Asia fluctuate.

It observes that India–Maldives relations have evolved from basic neighbourly ties into a mature, multi-dimensional partnership defined by trust, development, and a shared vision.

“From being a first responder in times of crisis to a long-term partner in infrastructure, trade, tourism, and sustainability, India’s engagement with the Maldives reflects a relationship built on respect rather than dominance,” the article states.

Looking ahead, the trajectory of India–Maldives relations is poised to become even more comprehensive with the proposed Free Trade Agreement and a Bilateral Investment Treaty, which are expected to strengthen economic cooperation and enhance private investment flows, the article added.

sps/vd