India approves essential exports to Maldives for 2025–26, including rice, onions, and construction materials under the 1981 trade pact.
Bilateral trade hits $978.53 million, with India remaining Maldives' top trading partner and key development ally.
Strategic cooperation continues under ‘Neighbourhood First’ and Vision SAGAR, despite recent diplomatic strains.
India and the Maldives have stepped up efforts to strengthen economic cooperation and deepen bilateral trade, as emphasized during a recent high-level meeting in Malé between India’s Commerce Secretary Sunil Barthwal and Maldivian Minister of Economic Development and Trade Mohamed Saeed. The discussions focused on enhancing trade and investment linkages, identifying new areas of collaboration, and reaffirming both countries’ commitment to a robust and mutually beneficial economic partnership.
A major outcome of the talks was India’s approval of essential commodity exports to the Maldives for the fiscal year 2025–26, under the framework of the 1981 bilateral trade agreement. The Directorate General of Foreign Trade (DGFT) has issued export quotas for a variety of key items including rice, wheat flour, onions, sugar, dal, eggs, potatoes, stone aggregate, and river sand.
These exports are exempt from any existing or future restrictions during the approved period and will be routed through six designated Indian ports, ensuring transparency and regulatory compliance.
Notably, the quotas for several essential items have been increased, reflecting India’s continued role as a reliable trade partner and a supporter of the Maldives’ food security and infrastructure development. For instance, the approved export volumes for 2025–26 include:
130,429 metric tonnes of rice
37,537 metric tonnes of onions
1.3 million metric tonnes each of stone aggregate and river sand
These commodities are vital to supporting daily needs and ongoing construction and development projects across the Maldives.
India remains the Maldives’ largest trading partner, with bilateral trade reaching $978.53 million in 2023–24. Beyond trade in goods, India has extended financial support including a $25.94 million currency swap facility to help stabilize the Maldivian economy. Additionally, India continues to play a crucial role in infrastructure, healthcare, and capacity-building initiatives across the island nation.
Despite recent diplomatic challenges, both countries have reiterated their commitment to a long-term strategic and economic partnership. This includes cooperation in maritime security and alignment with India's ‘Neighbourhood First’ and Vision SAGAR (Security and Growth for All in the Region) policies, which emphasize shared prosperity, regional security, and sustainable development in the Indian Ocean region.
(This story is published from a syndicated feed)