Economic Development Minister Mohamed Saeed has begun formal discussions with Indian officials on a proposed free trade agreement (FTA) between the Maldives and India.

During a visit to India at the invitation of India's Commerce Minister, Shri Piyush Goyal, Minister Saeed held further talks on the proposed agreement.

Ministers Saeed and Goyal discussed incorporating mutually beneficial provisions into the formal negotiations on the FTA.

According to the Economic Ministry, the agreement is expected to expand trade opportunities between the two countries and help address existing trade barriers.

During Indian Prime Minister Narendra Modi's visit to the Maldives last year, both countries announced that they would begin negotiations to establish a bilateral free trade agreement.

At the time, Indian Foreign Secretary Vikram Misri said bilateral trade and investment between the Maldives and India was valued at around USD 500 million (MVR 7.7 billion), adding that both sides planned to pursue additional trade agreements in new sectors.

Efforts to establish a bilateral trade agreement between the Maldives and India had also begun under the administration of former President Ibrahim Mohamed Solih.