How has India-Maldives bilateral trade surged 3-fold in 7 years?
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Synopsis
Discover the remarkable growth in trade between India and the Maldives, which has increased more than threefold over seven years. This article explores the significant developments, including a substantial line of credit and discussions for a free trade agreement, as both nations strengthen their ties.
Key Takeaways
- Bilateral trade between India and the Maldives has increased over threefold in seven years.
- India's exports to the Maldives saw a significant rise.
- A Rs 4,850 crore line of credit was announced to boost ties.
- Discussions for a free trade agreement are underway.
- The Maldives is crucial for India's maritime strategy.
New Delhi, Aug 17 (NationPress) Bilateral trade between India and the Maldives has seen a significant increase, soaring more than 3 times over the past seven years, from $223 million in 2017–18 to $680 million in 2024–25, as per official statistics.
India's exports to the Maldives grew from $217 million in FY 2017-18 to $561 million in FY 2024-25, while imports from the Maldives surged from $6 million to $119 million during the same timeframe.
The trade is anticipated to rise further after Prime Minister Narendra Modi unveiled a Rs 4,850 crore line of credit to the Maldives during his recent trip to the island nation last month. Furthermore, PM Modi announced the initiation of discussions regarding a free trade agreement between the two countries.
India is also focusing on enhancing renewable energy initiatives in the Maldives, pledging to share its expertise in this domain with its Indian Ocean neighbor.
During his visit, PM Modi was invited by President Mohamed Muizzu and attended the country's 60th Independence Day as the Guest of Honour. This visit marked a notable shift in relations with the Muizzu administration, which took office in 2023.
The improvement in bilateral relations is particularly notable given that President Muizzu, who has close ties with China, previously employed anti-India rhetoric while in opposition as part of his political strategy to displace the former government.
The Maldives is a crucial maritime neighbor for India in the Indian Ocean Region, and the overall bilateral relations, particularly in defense and security, have seen positive growth under previous administrations in Male.
This enhancement in relations aligns with India's Neighbourhood First policy and the MAHASAGAR vision, which underscores the interdependence of security and prosperity in the region.
India's strategy is rooted in the understanding that small island nations are pivotal players in global matters, serving as frontline states in the battle against climate change, protectors of vital sea lanes, and partners in maritime security. The Maldives, positioned along essential shipping routes, holds a vital role in India's overarching Indian Ocean strategy.
Point of View
I emphasize that the strengthening of India-Maldives relations is a crucial aspect of our national strategy, aligning with our commitment to regional stability and cooperation. This partnership not only enhances trade but also reflects our dedication to supporting our neighbors in their sustainable development efforts.
NationPress
20/08/2025
Frequently Asked Questions
What was the trade value between India and the Maldives in 2017?
The trade value between India and the Maldives in 2017 was $223 million.
How much did India's exports to the Maldives increase?
India's exports to the Maldives increased from $217 million in FY 2017-18 to $561 million in FY 2024-25.
What line of credit did India announce for the Maldives?
India announced a Rs 4,850 crore line of credit for the Maldives during Prime Minister Modi's recent visit.
What is the significance of the Maldives in India's maritime strategy?
The Maldives is a crucial maritime neighbor for India, playing a central role in the Indian Ocean strategy due to its strategic location along vital shipping routes.
How has the political landscape in the Maldives changed recently?
The political landscape in the Maldives has changed with the rise of President Mohamed Muizzu, who was previously known for his anti-India rhetoric but is now fostering improved relations with India.
