New Delhi: Bilateral trade between India and the Maldives has experienced a significant expansion over the past eight years, growing more than threefold to reach around $799 million in FY 2024–25 — propelled by stronger exports, rising imports and expanding economic cooperation between the two neighbours.
According to industry and government data, India’s exports to the Maldives roughly doubled to about $680 million, driven by key categories such as petroleum products, pharmaceuticals, food items (including rice, fruits and vegetables), machinery and transport equipment that address essential consumption and infrastructure needs in the island nation. At the same time, imports from the Maldives soared nearly 20-fold to $119 million, primarily on the back of fish and marine products.
The expansion in trade coincides with a broader strengthening of India–Maldives bilateral relations, particularly following diplomatic engagements including Prime Minister Narendra Modi’s recent visit to Malé. During that visit, multiple key agreements were signed, covering areas such as debt relief, infrastructure financing through a $565 million Line of Credit, digital payments integration (UPI/RuPay), housing, fisheries cooperation, climate resilience and security assistance — laying the groundwork for deeper economic integration.
Analysts attribute part of the trade surge to synergistic complementarities between the economies, where India’s manufacturing and agricultural output meets the Maldives’ imports demand, while the island nation’s seafood and niche marine products find a growing market in India. The rising flow of Indian tourists to the Maldives is another key driver of economic interdependence, boosting services trade and reinforcing tourism-linked consumption patterns.
Observers say that this upswing in commerce underscores a maturing bilateral relationship that extends beyond traditional aid and neighbourly cooperation to a multi-dimensional economic partnership with growing private sector and investment engagement. Both sides are pursuing negotiations on a Free Trade Agreement (FTA) and a Bilateral Investment Treaty aimed at further liberalising commerce and catalysing private capital flows, signaling confidence in future collaboration.
Economists note that while trade volumes remain modest compared with India’s overall global trade portfolio, the trajectory of growth — marked by balanced export expansion and rapid import gains — reflects sustained momentum and strategic alignment between the two countries.