Are Free Trade Agreements and Investment Treaties on the Horizon as PM Modi Visits Maldives?

New Delhi, July 22 (NationPress) Prime Minister Narendra Modi is set to embark on a two-day State visit to the Maldives this week, an initiative aimed at strengthening the bonds between the two countries and fostering peace, prosperity, and security in the Indian Ocean Region (IOR), according to Foreign Secretary Vikram Misri. Notably, both nations are currently in talks to establish a Free Trade Agreement as well as an investment treaty.

Prime Minister Modi's visit to the Maldives, scheduled for July 25–26, comes on the invitation of President Mohamed Muizzu. This trip marks Modi's third visit to the Maldives, following his previous visits in 2018 and 2019, and is significant as it is the first by a Head of State during Muizzu’s presidency, which commenced in November 2023.

On July 25, PM Modi will arrive in the Maldives, concluding his two-nation tour after visiting the United Kingdom starting Wednesday.

During the visit, Modi will engage in discussions with Muizzu on various mutual interests and will serve as the 'Guest of Honour' at the Maldives' 60th Independence anniversary celebrations on July 26. The year 2025 also signifies the 60th anniversary of diplomatic relations between the two nations.

President Muizzu had previously visited India in October 2024 for a State Visit and attended the swearing-in ceremony of the newly elected government. The two leaders have also met during the COP meeting in Dubai.

Foreign Secretary Misri emphasized that the relationship with the Maldives is broad and complex, which has garnered attention from the highest leadership levels. He believes that Modi's visit will further strengthen these ties and contribute to the peace, prosperity, and security of the Indian Ocean Region.

The two leaders are expected to review the progress of the India-Maldives Joint Vision for a 'Comprehensive Economic and Maritime Security Partnership,' which was adopted during the Maldivian President's State visit to India in October 2024.

PM Modi is also anticipated to launch several infrastructure initiatives, underscoring India's significant commitment to its maritime neighbor, the Maldives, which holds a pivotal role in India's 'Neighbourhood First' policy and Vision MAHASAGAR.

Misri noted that India has consistently been the first to respond to the Maldives' needs in times of crisis, whether natural or man-made. There exists a strong political relationship, bolstered by high-level visits.

The joint vision serves as a guiding framework for bilateral ties. In just the first half of this year, Maldives has seen numerous ministerial-level visits to India, including a visit from the Speaker of the Maldives Parliament. The year's first engagement by the External Affairs Minister was with the Maldivian Foreign Minister.

A High-Level Core Group (HLCG) has been formed to monitor the implementation of the joint vision, having met in Male and Delhi in January and May 2025, respectively. Recent political visits from the Maldives to India have included various Ministers such as Finance, Foreign, Defence, and Health.

Misri stated that India remains one of the largest trading partners of the Maldives, with bilateral trade nearing $500 million.

On the economic front, discussions are underway to negotiate a Free Trade Agreement and an investment treaty, as well as exploring new cooperation areas such as renewable energy and fisheries. Notably, India has been a traditional development partner for the Maldives, engaging in various initiatives through concessional Lines of Credit, grants, and capacity-building programs.

The flagship project currently in progress is the Greater Male Connectivity Project, which is poised to transform infrastructure in the Greater Male region by connecting four islands. Additional projects in roads, airports, fisheries, and social housing are also being executed according to the Maldives' needs and priorities.

India's financial assistance to the Maldives government includes instruments like twin currency swap arrangements, and Misri highlighted that the Maldives is among the largest beneficiaries of India's capacity-building programs.

In terms of defense and security, India continues to support the Maldives in capacity-building, personnel training, and through regular naval exercises. Additionally, India is enhancing Maldives' capacity for Exclusive Economic Zone surveillance and maritime domain awareness by providing ships and assets, all while cooperating under the Colombo Security Conclave.