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China-Maldives FTA: Will India's apparel exports face setbacks?

India remains one of the Maldives’ largest exporters, even surpassing China in terms of export volume, as per CY **** data. Indian textiles and apparel, particularly finished garments, hold a significant share of the Maldivian market and rank among the top three export categories to the island nation. However, this stronghold faces challenges as China’s cost-competitive products, driven by economies of scale, are poised to flood the market under the new FTA.

With increased trade activity between China and the Maldives, Indian textile and apparel exports risk losing ground to cheaper Chinese alternatives. To maintain its competitive edge, Indian exporters must focus on value-added offerings, quality differentiation, and strategic pricing. Fibre2Fashion examines India’s current standing in the Maldivian textile market and highlights key product categories Indian exporters should prioritise to retain their leadership in this vital export destination.