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India-Maldives Trade Soars 300% in 8 Years, Fueled by New Deals & Tourism

Bilateral trade between India and the Maldives has grown more than threefold over the last eight years, with Indian exports doubling and imports from the Maldives surging twentyfold. The relationship has been strengthened by eight key agreements signed during a recent visit, covering debt relief, a major line of credit, and UPI integration. Tourism serves as a critical bridge, with India consistently ranking among the top sources of visitors, providing economic stability to the Maldives. The partnership is set to deepen further with ongoing negotiations for a Free Trade Agreement and a Bilateral Investment Treaty.

Key Points: India-Maldives Trade Triples, UPI & $565M Deal Boost Ties

  • Trade tripled in 8 years
  • $565M Line of Credit & debt relief agreed
  • UPI-RuPay integration advances
  • India is top tourist source
  • FTA & investment treaty in talks
2 min read

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

India-Maldives trade jumps 3x in 8 years. Exports hit $680M, imports surge 20x. New deals on UPI, debt relief & a $565M credit signal deepening partnership.

India-Maldives trade records three-fold jump in last 8 years
"From being a first responder in times of crisis to a long-term partner in infrastructure, trade, tourism, and sustainability... - Maldives Insight"

New Delhi, Jan 1

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.

- IANS

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Reader Comments

P
Priya S
Very positive development. It's good to see our exports helping a friendly neighbour with essentials like medicines, food, and fuel. The debt relief and line of credit show we are a reliable partner, not just a trader.
R
Rohit P
While the growth is impressive, I hope we are also getting good quality marine products in return. The 20-fold jump in imports from Maldives is interesting. More Maldivian fish in our markets would be great!
M
Michael C
As someone who travels frequently, the tourism bridge mentioned is very real. So many Indian families choose the Maldives now. Stable tourist numbers from India must be a huge relief for their economy.
S
Siddharth J
The key is "relationship built on respect rather than dominance." This is how India should engage with all its neighbours. Mutual benefit and long-term partnership is the way forward. Good diplomatic work.
N
Nisha Z
I appreciate the positive news, but we must ensure our aid and loans are used transparently for the intended infrastructure projects. A respectful partnership also requires accountability on both sides.
K
Karthik V
The proposed FTA and Investment Treaty are the next big steps. This will create so many opportunities for Indian businesses in hospitality, construction, and services in the

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