Bilateral trade between India and the Maldives has experienced a remarkable surge, increasing threefold in the last seven years. Official figures indicate that trade has jumped from $223 million in 2017-18 to $680 million in 2024-25.
This substantial growth can be attributed to several factors. The launch of a cargo vessel service between the two countries in September 2020 has played a significant role. Additionally, the commencement of work on various Line of Credit (LoC) projects since February 2021 has further boosted trade. The implementation of visa-free entry for Indians arriving in the Maldives for business purposes in February 2022 has also contributed to the expanding commercial partnership. In March 2022, India and the Maldives agreed to an open skies arrangement, which is expected to further improve air connectivity and facilitate trade between the two countries.
India and Maldives have a trade agreement since 1981, which allows for the export of essential commodities. In 2021, bilateral trade crossed the USD 300 million mark for the first time and then crossed USD 500 million in 2022. In 2023, the trade stood at $548 million. India became the Maldives' second-largest trade partner in 2022 and the largest in 2023. Indian imports from the Maldives primarily consist of scrap metals, while Indian exports to the Maldives include a variety of engineering and industrial products, such as drugs and pharmaceuticals, radar apparatus, rock boulders, aggregates, cement, and agricultural produce like rice, spices, fruits, vegetables, and poultry. Efforts are underway to explore the potential for seafood exports from the Maldives to India.
India has been a long-standing partner in human resource development for the Maldives across various sectors. Many Maldivian students pursue higher education in Indian universities every year. Indian teachers have been popular in Maldivian schools across the islands for decades. India has traditionally offered a substantial number of ICCR scholarships to Maldivian youth, including 34+ for 2023-24.
In October 2024, the President of the Republic of Maldives, Dr. Mohamed Muizzu, made a State visit to India. During his visit, he met with the Indian President and held discussions with the Prime Minister on bilateral, regional, and international issues of mutual interest. The President of Maldives and the Prime Minister jointly adopted a framework document titled "India Maldives: A Vision for Comprehensive Economic and Maritime Security Partnership" and launched various development projects and witnessed the exchange of MoUs for bilateral cooperation.
Former Maldivian President Solih paid an official visit to India in August 2022, accompanied by key ministers and a business delegation. He had official talks with Prime Minister Modi and met with the President of India. Several agreements were signed in areas of cybersecurity, disaster management, fisheries, and capacity building of local government representatives.
India's support to the Maldives extends beyond trade and economic cooperation. India was the first to assist the Maldives during the 2004 Tsunami and the water crisis in Malé in December 2014. India's rapid assistance to the Maldives since the COVID-19 pandemic began has further reinforced India's credentials as the "first responder".
