New Delhi, June 29 (IANS) The first round of India-Maldives negotiations for a free trade agreement began on Monday and will continue till July 7, as the two countries aim to formally sign the pact by the end of this year, the Commerce Ministry announced.

“The Government of India has officially commenced the first round of negotiations for a bilateral Free Trade Agreement (FTA) with the Republic of Maldives. The discussions are being conducted in virtual mode and are scheduled from June 29 to July 7, 2026,” a Commerce Ministry statement said.

India and the Maldives are actively fast-tracking their Free Trade Agreement (IMFTA) negotiations. Both the Indian Ministry of Commerce and the Maldivian government have finalised the Terms of Reference (ToR) to outline the scope of the pact. The agreement will focus on reducing tariffs, simplifying trade regulations, and encouraging cross-border services and investments.

Maldivian Foreign Minister Iruthisham Adam and Indian External Affairs Minister S. Jaishankar met to review and accelerate the negotiations. Both delegations committed to boosting commercial ties as the two nations celebrate 60 years of diplomatic relations.

The trade talks have been paired with broader economic and financial integration, including the implementation of the RuPay card, local currency trade, and Unified Payments Interface (UPI) integration.

Maldives Economic Development and Trade Minister Mohamed Saeed recently said that the deal is expected to create new opportunities for Maldivian businesses and strengthen economic ties between the two countries.

The IMFTA was first announced during President Dr Mohamed Muizzu’s visit to India in 2024, when the two governments agreed to begin negotiations.

According to Minister Saeed, the agreement forms part of the government’s strategy to diversify the economy and reduce its reliance on a single sector.

India is one of the largest trading partners for the Maldives and one of the world’s biggest consumer markets. The free trade agreement will provide easier access for Maldivian products to one of the fastest-growing markets in the world, the minister said.

–IANS

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