New Delhi: India on Thursday rejected Male minister's claim on Free Trade agreement, saying no specific proposal for a bilateral FTA with the Maldives has been made with India.
In his weekly media briefing here, Ministry of External Affairs (MEA) spokesperson, Randhir Jaiswal said, "No specific proposal for a bilateral FTA with the Maldives has been made by the Government of India. If the Government of Maldives expresses interest in having an FTA with India, we will give it due consideration".
This comes after Maldives' Minister of Economic Development and Trade Mohamed Saeed had said that India has expressed desire to complement the existing South Asian Free Trade Agreement (SAFTA) with a bilateral. He stated the Maldives President has extended the opportunity for FTAs to all countries, aiming to facilitate trade activities.
The comment comes amid the heightened diplomatic tensions between India and Male since Maldivian President Mohamed Muizzu came to power and has been upfront with his Pro-China stance. After his oath taking, Muizzu demanded the withdrawal of Indian military personnel from the Maldives, which was completed earlier this month.
Although, India-Male don't have an FTA, the 1981 trade agreement between the two countries aims to promote and strengthen trade relations. It facilitates the import of essential commodities from India to the Maldives and the export of Maldivian products to India. Both India and the Maldives are members of SAFTA (South Asian Free Trade Area), which aims to reduce tariffs and promote free trade within the South Asian region.
The Reserve Bank of India (RBI) and the Maldives Monetary Authority (MMA) signed the currency swap agreement in 2020 to provide short-term liquidity assistance and promote financial stability, which indirectly supports trade relations. India has committed to several infrastructure development projects in the Maldives, including the Greater Male Connectivity Project (GMCP), which aims to improve connectivity and trade logistics between the two countries.
