India and the Maldives are in the process of establishing a Free Trade Agreement (FTA), according to Maldivian Minister Mohamed Saeed. During a press briefing in Male, Saeed, who holds the portfolio of Minister of Economic Development and Trade, disclosed ongoing discussions regarding the FTA.

Expressing India's interest in an FTA with the Maldives alongside the South Asian Free Trade Agreement (SAFTA), Saeed remarked, "They (India) want there to be a Free Trade Agreement with (the) Maldives." President Mohamed Muizzu has reportedly extended the offer of a free trade deal to all countries, aiming to enhance trade facilitation.

The pursuit of a free trade agreement with the Maldives coincides with recent diplomatic tensions between the two nations, stemming from a series of online exchanges following Prime Minister Narendra Modi's visit to Lakshadweep. However, efforts to bolster trade relations continue, as evidenced by the growing bilateral trade volume, which exceeded $500 million in the past year.

Despite the diplomatic strains, India reaffirmed its commitment to supporting the Maldives by extending a $50 million Treasury Bill, demonstrating goodwill towards bilateral relations.