India-Maldives Trade Dynamics Amid Tensions

Despite strained ties between India and the Maldives due to rising Chinese influence, India has decided to allow limited exports of essential commodities to the Maldives. This move includes shipments of sugar, wheat, rice, onions, stone aggregate, and river sand. The exemption from export restrictions/prohibitions reflects India’s willingness to maintain trade relations with the Maldives despite geopolitical tensions.

While India has imposed curbs on food commodity exports domestically, it has granted special provisions for exports to the Maldives in the 2024/25 financial year. The Maldives’ shift towards Beijing under President Mohamed Muizzu has altered traditional diplomatic dynamics in the region, although India remains an important trade partner for essential goods.