The future of economic relations between the Maldives and India will be driven by opportunities in financial technology and renewable energy, Indian High Commissioner to the Maldives G. Balasubramanian has said.
Speaking on the Trade Desk podcast, produced by the Ministry of Economic Development, Transport and Trade, Balasubramanian said Indian companies have already made significant investments in the Maldives, particularly in the tourism and agriculture sectors.
He said an Indian company is currently undertaking agricultural projects in Baa Atoll, while another Indian company is expected to launch a new investment in the Maldives later this year.
Balasubramanian also noted that Indian investment in the tourism sector continues to expand, with six or seven Indian companies currently developing new resorts in the Maldives. He said the next phase of economic cooperation between the two countries would extend beyond tourism and agriculture to include financial technology (fintech) and renewable energy.
"In my view, the future lies within financial technology. This includes fintech, energy supply and the renewable energy sector. For instance, we are working closely with the Maldivian Government and Payment Maldives to establish fintech systems such as UPI in the Maldives," he said.
Speaking about efforts to strengthen bilateral trade, Balasubramanian said work is under way to finalise a bilateral investment treaty aimed at protecting investments in both countries. He added that discussions on a bilateral Free Trade Agreement (FTA) have also begun, with the Terms of Reference already signed.
"When talking about free trade, a free trade agreement already exists under the SAARC framework. However, we are now working towards a bilateral Free Trade Agreement at a SAFTA Plus level. This will provide solutions to the hurdles faced by both Maldivians and Indians in exporting goods and services," he said.
Balasubramanian noted that the Maldives provides tourism services to India worth between USD 300 million and USD 400 million each year, adding that there is significant potential for further growth in the sector.
He also said Maldivian tuna exports currently enter the Indian market duty-free and expressed confidence that the proposed agreement would create additional opportunities for cross-border trade in goods and services.