The government of Maldives have proposed to start talks on a Free Trade Agreement (FTA) with India.

The government's proposal was made during a meeting at the Foreign Ministry yesterday upon the arrival of Indian External Affairs Minister S. Jaishankar.

During the meeting, Foreign Minister Moosa Zameer said India is a very close friend of the Maldives and an important partner in our development. This is a friendship based on trust and respect and will continue to grow in the future, he added.

Zameer said India has always provided assistance to the Maldives in various sectors. He said India's assistance to health, education, youth, sports and housing sectors has made good progress in the development of these sectors in the country.

“The Indira Gandhi Memorial Hospital in the capital is proof of that,” Zameer said.

The minister further said that the ministers of both countries agreed that more needs to be done to increase trade and investment between both countries. He said both countries are ready to introduce stronger mechanisms to build a beneficial trade relationship between each other.

“I propose on behalf of the President to start negotiations on a free trade agreement between Maldives and India,” Zameer said.

The Minister said the Free Trade Agreement (FTA) and other trade-related agreements between the two countries would further facilitate business transactions between the Maldives and India and reduce trade risks.

Minister Zameer further said that he discussed issues related to economy, trade, investment, education, skills development, health, tourism, youth, sports and defense and security.

He further mentioned India's financial assistance to the Maldives under the Neighborhood First Policy and thanked India for its assistance in budget support with a USD 50 million Treasury bill rollover.