India and the Maldives have witnessed a remarkable surge in bilateral trade, which has expanded more than threefold over the past seven years. Official figures reveal that trade jumped from $223 million in 2017&ndash;18 to $680 million in 2024&ndash;25, marking a significant strengthening of economic ties between the two nations.
India&rsquo;s exports to the Maldives have risen sharply from $217 million in FY 2017&ndash;18 to $561 million in FY 2024&ndash;25, while imports from the Maldives grew from $6 million to $119 million during the same period.
This surge is set to continue as Prime Minister Narendra Modi recently announced a line of credit worth ₹4,850 crore for the Maldives, along with the initiation of talks on a potential free trade agreement. Energy cooperation is another key area, with India sharing its expertise in renewable energy to help the island nation transition towards a greener future.
PM Modi visited Male last month at the invitation of President Mohamed Muizzu, where he was the Guest of Honour at the Maldives&rsquo; 60th Independence Day celebrations. This visit marked a notable reset in relations, as President Muizzu, once known for his anti-India rhetoric, has now engaged in closer diplomatic and economic cooperation.
The Maldives holds a vital position in India&rsquo;s Indian Ocean strategy under the Neighbourhood First policy and the MAHASAGAR vision. Its location along critical sea lanes makes it a crucial maritime partner for India in areas of security, trade, and climate action. The renewed momentum in ties highlights the shared commitment of both nations to stability, prosperity, and sustainable growth in the region.

Bilateral trade hits $680M as India boosts ties with Maldives through credit, FTA talks

India-Maldives trade soars 3x in 7 years

Bilateral trade hits $680M as India boosts ties with Maldives through credit, FTA talks

August 17, 2025 | 16:02 IST