India-Maldives trade has tripled in eight years, boosting exports, imports, tourism, and strategic economic ties, while bilateral agreements pave way for stronger cooperation

New Delhi

Bilateral trade between India and the Maldives has grown more than threefold over the past eight years. India’s exports to the Maldives doubled to $680 million in FY 2024–25, while imports from the island nation rose 20-fold to $119 million. Key sectors for exports include petroleum, pharmaceuticals, food products like rice and vegetables, machinery, electrical equipment, and transport vehicles. Imports are mainly fish and marine products, which hold strategic and economic importance.

Tourism continues to strengthen the ties between the two nations. India remains one of the top sources of tourists for the Maldives, providing stability to its tourism-dependent economy, particularly when arrivals from Europe or East Asia fluctuate. The growing movement of Indian tourists has enhanced people-to-people connections, complementing trade and investment flows.

Relations recently entered a renewed phase following Prime Minister Narendra Modi’s visit, during which eight significant bilateral agreements were signed. These cover debt relief, a $565 million Line of Credit for infrastructure, UPI–RuPay integration, fisheries and housing cooperation, security support, climate resilience, and advancing Free Trade Agreement (FTA) and Bilateral Investment Treaty talks.

Experts note that India–Maldives relations have evolved from basic neighbourly ties into a mature, multi-dimensional partnership built on trust, mutual development, and shared vision. India has acted as both a first responder during crises and a long-term partner in infrastructure, trade, tourism, and sustainability.

Looking ahead, the proposed FTA and investment treaty are expected to deepen economic cooperation, attract private investment, and make the India–Maldives partnership even stronger and more comprehensive.