India and the Maldives have moved a step closer to strengthening their economic partnership after completing negotiations for a bilateral investment treaty (BIT). The two countries concluded the talks on July 7. Officials are now carrying out the legal vetting of the agreement before signing it. At the same time, both sides are speeding up discussions on a proposed free trade agreement (FTA), which is expected to further improve trade and investment between the two nations.

The announcement came after a meeting between Union Commerce and Industry Minister Piyush Goyal and Maldivian Economic Development Minister Mohamed Saeed on Wednesday. During the meeting, both leaders also discussed expanding cooperation in tourism, startups, digital payments, and micro, small and medium enterprises (MSMEs). These sectors remain important for strengthening economic ties and creating new business opportunities for both countries.

Speaking after the meeting, Mohamed Saeed highlighted the rapid progress in the discussions between the two sides. He said, "We have seen the fast, quick progress of FTA dialogue... both sides meet almost every day. BIT is concluded. We are just seeing the legal scrubbing process."

Piyush Goyal also welcomed the progress made in the negotiations. He said the partnership between India and the Maldives would soon become stronger through these agreements. "The relationship between the two countries is 'soon going to get another fillip' with the signing of the BIT and, later, the FTA," Goyal said.

Trade between India and the Maldives has continued to grow steadily over the past year. Bilateral trade increased by 13.5 per cent and reached 771.76 million US dollars in the financial year 2025-26. The figure stood at 690 million US dollars in 2024-25. India exported goods worth 458.71 million US dollars to the Maldives, while imports from the island nation reached 313 million US dollars. The growth reflects the strong business relationship that both countries have built over the years.

India exports a wide range of products to the Maldives. These include drugs and pharmaceuticals, radar apparatus, rock boulders, aggregates, cement, and several agricultural products. Rice, spices, fruits, vegetables, and poultry remain among the key agricultural exports. These products play an important role in meeting the needs of the Maldivian market and support regular trade between the two countries.

India mainly imports scrap metal from the Maldives. Although imports remain smaller than exports, trade continues to expand as both countries explore new opportunities for economic cooperation.

Investment between the two nations has also shown steady progress. Foreign direct investment (FDI) from the Maldives into India reached 12.65 million USD between April 2000 and March 2026. The upcoming bilateral investment treaty aims to increase investment by offering greater protection to investors and creating a more secure business environment. The agreement will encourage companies from both countries to invest with greater confidence.

India and the Maldives already share a long-standing trade relationship. The two countries signed a trade agreement in 1981 that covers the export of essential goods from India to the Maldives. The latest investment treaty builds on this foundation and reflects the growing economic partnership between the neighbouring countries.

The conclusion of the BIT negotiations marks an important step in expanding bilateral economic relations. The agreement will promote and protect cross-border investments while improving investor confidence. Strong investment protection can encourage businesses to explore new opportunities and support long-term economic growth in both countries.

India has recently signed similar bilateral investment treaties with Israel and the United Arab Emirates. Extending the same framework to the Maldives highlights India's continued focus on strengthening economic partnerships with key countries in the region. The proposed free trade agreement will further expand market access, improve trade, and create fresh opportunities for businesses on both sides.

With the BIT negotiations complete and FTA discussions moving quickly, India and the Maldives have entered a new phase in their economic partnership. Once both agreements are signed, they are expected to deepen trade, encourage investment, and open new avenues of cooperation across several sectors. The developments also reflect the commitment of both governments to build a stronger and more comprehensive economic relationship for the future.