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    Home»India»‘Need To Take That Into Account…’: India On Maldives’ Revenue Loss Due To China Free Trade Agreement |
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    ‘Need To Take That Into Account…’: India On Maldives’ Revenue Loss Due To China Free Trade Agreement |

    News Analysis IndiaBy News Analysis IndiaJanuary 31, 20251 Min Read
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    India on Friday said that the recent agreements between Maldives and other countries like China and Turkey will affect New Delhi’s financial assistance to the island nation. Reacting to a question, MEA spokesperson Randhir Jaiswal said that the agreements will result in revenue loss for the Maldives government.

    “We remain in close touch with Maldivian authorities on the situation facing them. Recent agreements that are likely to result in revenue loss for the Maldives Government are, obviously, a matter of concern and do not bode well for the long-term fiscal stability of the country. We would, obviously, need to take that into account while framing our own policies,” said Jaiswal.

    The Maldives and China’s free trade agreement has come into effect recently and it will lead to custom revenue loss for Male, thus further affecting its already struggling economy. The Maldives government has also signed an FTA with Turkey as well which will come into effect in coming months.

    India has offered financial assistance to Maldives from time to time. The two nations went through a relationship turmoil last year but the relations have improved with the leaders of both countries visiting each other. 

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