Since pandemic, India-Maldives trade has surged even as investments lag

India exported goods worth $2.6 billion to Maldives between 2013-14 and 2022-23 and imported $644 million from Maldives in the same period

Trade with the Maldives has seen a surge even as investments involving the country lag other South Asian economies.

India exported goods worth $2.6 billion to Maldives between 2013-14 and 2022-23 and imported $644 million from the Maldives in the same period.

India’s imports from the Maldives averaged less than $10 million before the pandemic. This surged to $497 million in 2022-23.

Exports had picked up the previous year to $670 million, and came in at $477 million in 2022-23, compared to an average of less than $200 million before the pandemic.

Over 80 per cent of the import in 2022-23 was from the trade category for ‘aircraft, spacecraft and parts.’ Petroleum products made up 12 per cent and iron, steel and copper articles comprised 3 per cent of the total import. Similarly, top exports to Maldives included metal and pharmaceutical products.

India has seen limited foreign direct investment originating from Maldives since the turn of the millennium.

India has also invested far more in other South Asian countries. Indian outbound travellers accounted for 11 per cent of the tourist traffic to Maldives in 2023, second to Russia and ahead of China, as per data from consultancy firm Centre for Asia Pacific Aviation (CAPA) India.

While such updated figures are not available for India, data from the Ministry of Tourism shows that Maldivian tourists accounted for under 1 per cent of the total tourist arrivals to India before the pandemic in 2019.