India denies proposing to form Free Trade Agreement with Maldives

The Indian government has denied proposing to form a Free Trade Agreement (FTA) with Maldives, as was remarked by Maldivian Economic Minister Mohamed Saeed.

At a press briefing held by the Economic Ministry last Saturday, Minister Saeed said India has expressed interest for an FTA with the Maldives besides the South Asian Free Trade Area (SAFTA).

The Spokesperson of India’s External Affairs Randhir Jaiswal denied the claim at the Ministry’s weekly press briefing held on Thursday.

Responding to a question posed by a journalist at the press briefing, Jaiswal denied that a “specific proposal” had been made by the Indian government for a bilateral FTA with the Maldives. He added that the Indian government will give the matter due consideration if the Maldivian government expresses interest in this trajectory.

Earlier, during former President Abdulla Yameen Abdul Gayoom's administration, Maldives government entered into a Free Trade Agreement with China. However, Yameen's successor, former President Ibrahim Mohamed Solih had criticized the agreement and announced his administration would not honor due to its particulars.

The Maldives-China Free Trade Agreement breathed new life after Dr. Mohamed Muizzu took charge as Maldives President in November 2023. The incumbent President said the agreement was a symbol of strong relations between the Maldives and China, adding his administration was ready to continue honoring the agreement.

Relations between India and Maldives had soured earlier after three high-ranking Maldivian officials made derogatory remarks against Indian Prime Minister Narendra Modi.

Moreover, President Dr. Muizzu has been labeled as "pro-China" in several Indian media outlets, but the Maldives head of state had later responded to the claims stating he is "pro-Maldives".