The Central Government has permitted export of 9 essential goods to Maldives in 2024-25 under the bilateral trade agreement between Government of India and Government of Maldives. The government has permitted the export of Eggs, Potatoes, Onions, Rice and more in specified quantities.
Amid escalating diplomatic tensions following the anti-India actions by the Government of Maldives, this decision was made. The tourism sector, crucial for Maldives’ economy, experienced a great downturn as Indian tourists redirected their travel preferences towards destinations such as Lakshadweep, given its comparable ecosystem, instead of Maldives.
Goods/Commodities permitted for Export to Maldives and its Quantity ( in MT )
The Government, vide notification No. 03/2023 dated 5th April 2024 has allowed the export of below mentioned goods to Maldives:
| S. No. | Commodity | Quantity to be allowed for FY 2024-25 ( in MT ) |
| 1 | Eggs | 427,536,904.20 |
| 2 | Potatoes | 21,513.08 |
| 3 | Onions | 35,749.13 |
| 4 | Rice | 124,218.36 |
| 5 | Wheat Flour | 109,162.96 |
| 6 | Sugar | 64,494.33 |
| 7 | Dal | 224.48 |
| 8 | Stone Aggregate | 1,000,000.00 |
| 9 | River Sand | 1,000,000.00 |
The government has stated that the above mentioned 9 commodities will be exempted from restriction from any existing or future restriction/prohibition during 2024-25.
For the export of above quantity of River Sand and Stone Aggregate, CAPEXIL shall ensure that the suppliers/extractors have obtained appropriate clearances and mining of the sand is not undertaken in the Coastal Regulation Zone Area, which is prohibited under the Coastal Regulation Zone notification.
In addition to above, export of River Sand and Stone Aggregate will be allowed subject to the exporter obtaining necessary environmental clearances/No Objection Certificate from the designated nodal authority of respective State Governments from where the River Sand is obtained. This permission will also be subject to any State legislation/judicial orders relating to mining of ‘River Sand’ and ‘Stone Aggregate’.
Bilateral Trade Agreement between India and Maldives
The trade agreement between India and Maldives, which started in 1981 to boost the export of essential goods, has seen remarkable growth. Bilateral trade crossed the USD 300 million mark in 2021 and surpassed USD 500 million in 2022.
This growth is attributed to a cargo vessel service launched between the two countries in September 2020 and the start of several Lines of Credit ( LoC ) projects in February 2021. Additionally, the introduction of visa-free entry for Indian business travellers to the Maldives in February 2022 has further strengthened this relationship.
Since February 1974, the State Bank of India has been playing a pivotal role in the Maldives’ economic development, offering loans for island resorts, marine product exports, and business ventures.
In November 2022, India responded to a request from the Maldivian Government amid their economic challenges by providing financial assistance of US$100 million. This aid was facilitated through the subscription of Maldives’ Government Domestic T-bonds by SBI, Malè, with a sovereign guarantee provided by India.
Additionally, in December 2022, the RBI signed a Currency Swap Agreement with the Maldives Monetary Authority (MMA) under the SAARC Currency Swap Framework, enabling MMA to make drawls in multiple tranches totaling up to USD 200 million from the RBI.
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