The Indian government has stated that Maldives and India have signed a Terms of Reference (ToR) so as to establish a Free Trade Agreement (FTA).
Indian Prime Minister Narendra Modi signed the agreement to hold official discussions in moving forward with an FTA between Maldives and India during his diplomatic visit to Maldives last July.
India's Ministry of Commerce and Industry told the nation's media yesterday that the ToR to begin discussions in the formulation of an FTA with Maldives has been signed.
No additional details about the ToR were given, with the Maldivian government not having given any information regarding the matter either.
The amount of goods exported from India to Maldives last year fell by 37 percent. However, goods exported from Maldives to India have yielded an increase of USD 119 million, which equals to a 37 percent increase.
Maldives entered into an FTA with China last year as well.
Maldives has also entered into a Preferential Trade Agreement with Turkey.
