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Strain in India-Maldives relations: Will it affect textile trade?

18 Jan '24
18 min read
Pic: Adobe Stock
Pic: Adobe Stock

Insights

  • Due to the ongoing diplomatic standoff between India and the Maldives, the textile trade may undergo disruptions.
  • The recent free trade agreement (FTA) signed with China raises concerns about the potential adverse impacts on Maldives' customs revenue.
  • The shift in the Maldives' policy is a matter of concern for the international community.

India’s trade with Maldives in textiles

Historically, India has been the second-largest trading partner in textiles for Maldives, next only to China. India holds a share of ** per cent in Maldives&#**;s total textile imports. Over the years, along with an increase in the exports of minerals, machinery, base metals, and ceramic goods—which are the largest exports of India—textile exports to Maldives have also seen a drastic increase. According to an Invest India report on the India-Maldives bilateral trade, in the year ****-****, textile exports from India saw a jump of approximately ** per cent. Thus, the huge jump in exports within a year makes the sector significant, in addition to the aforementioned categories.

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