Bilateral trade between India and the Maldives has grown more than threefold over the past eight years, reflecting a deepening economic and strategic partnership. In FY 2024–25, India’s exports to the Maldives doubled to $680 million, while imports from the island nation surged 20-fold to $119 million.
The strengthening trade ties coincide with a rise in Indian tourist arrivals, highlighting the growing economic interdependence between the two countries. The relationship recently entered a renewed phase following Prime Minister Narendra Modi’s visit to the Maldives, during which eight key bilateral agreements were signed. These agreements include debt relief reducing the Maldives’ annual repayment burden by 40%, a $565 million Line of Credit for infrastructure projects, UPI–RuPay integration, fisheries cooperation, housing projects, security assistance, climate resilience initiatives, and steps to advance Free Trade Agreement (FTA) and Bilateral Investment Treaty (BIT) discussions.
India’s exports to the Maldives are dominated by essential commodities, including petroleum products, pharmaceuticals, and food items such as rice, fruits, and vegetables. Machinery, electrical equipment, and transport vehicles also form a significant part of the export basket, meeting growing consumer demand in the Maldives.
Imports from the Maldives, while smaller in value, are strategically important, primarily consisting of fish and other marine products. Tourism remains the most visible and dynamic bridge between the two nations, with India consistently ranking among the top sources of tourist arrivals to the Maldives. This provides stability to the tourism-led economy, particularly during periods of fluctuating arrivals from Europe and East Asia.
Experts note that India–Maldives relations have evolved from basic neighbourly ties into a mature, multi-dimensional partnership built on trust, development, and a shared vision. “From being a first responder in times of crisis to a long-term partner in infrastructure, trade, tourism, and sustainability, India’s engagement with the Maldives reflects a relationship built on respect rather than dominance,” the report said.
Looking ahead, the proposed FTA and Bilateral Investment Treaty are expected to further strengthen economic cooperation and attract private investment flows, setting the stage for an even more comprehensive partnership.