Bilateral trade between India and the Maldives has more than tripled over the past seven years, rising from $223 million in 2017–18 to $680 million in 2024–25, official data shows.
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 increased from $6 million to $119 million during the same period.
The upward trend is expected to continue following Prime Minister Narendra Modi’s recent visit to Malé, where he announced a ₹4,850 crore line of credit to support development projects in the Maldives. Modi also confirmed that discussions have begun on a free trade agreement (FTA) between the two countries.
India has pledged to assist the Maldives in renewable energy development by sharing its expertise in the sector, strengthening cooperation in line with the growing partnership.
PM Modi travelled to the Maldives last month at the invitation of President Mohamed Muizzu to attend the country’s 60th Independence Day celebrations as Guest of Honour. The visit marked a turnaround in bilateral relations, given Muizzu’s earlier anti-India rhetoric during his time in opposition.
The Maldives remains a central pillar of India’s “Neighbourhood First” policy and MAHASAGAR vision, which underscores the importance of maritime security and regional prosperity. Strategically located along vital shipping routes in the Indian Ocean, the Maldives plays a key role in India’s security calculus.
India views small island nations not as peripheral actors but as critical partners in addressing global challenges such as climate change, safeguarding sea lanes, and strengthening maritime security.
