Union External Affairs Minister S Jaishankar has announced that India and the Maldives have reached an agreement to implement the Unified Payments Interface (UPI) in the Maldives too, which will have a "very positive" impact on the country's tourism sector.
The Memorandum of Understanding (MoU) was signed on Aug 9 as part of Jaishankar's three-day official visit to the Maldives.
"Witnessed signing of the MoU between the National Payments Corporation of India and the Ministry of Economic Development and Trade of the Maldives on the introduction of a digital payment system in the Maldives," he said in a post on X.
The National Payments Corporation of India (NPCI) developed the UPI, which is an immediate real-time payment system that allows for inter-bank transactions using mobile phones.
Jaishankar addressed a press conference with Moosa Zameer, the Minister of Foreign Affairs of the Maldives following their "productive discussions" that India has "revolutionized digital transactions" through the UPI.
He emphasized that it has increased financial inclusion in India, saying, "Today, 40% of the world's real-time digital payments take place in our country."
"We see this revolution every day in our lives. I am pleased to note that with the signing of the MoU today, we have taken the first step towards bringing this digital innovation to the Maldives," he said.
"I wish the very best to stakeholders on both sides and hope that we will soon see the first UPI transaction here. I should mention that it will have a very positive impact on tourism," he added.
Tourism is the Maldives' largest source of economy, accounting for over 30% of GDP and more than 60% of foreign exchange.
Jaishankar's visit aims to repair bilateral relations with the Maldives and is the first high-level visit from India since the archipelago nation's pro-China president, Mohamed Muizzu, took office last year.
"India's partnership with the Maldives is based on our deep desire to work together for each other's welfare and interests. It is a partnership that has enabled us to always swiftly and effectively respond to challenges, as witnessed in the past," Jaishankar said.
"It is a partnership that has enabled us to deliver results and bring tangible benefits to our people in accordance with their wishes, aspirations, and priorities," he said.
"Jointly inaugurated six high-impact projects in areas of street lighting, mental health, children's speech therapy, and special education,” Jaishankar said in a post on X.
"Welcome renewal of the MoU between the National Centre for Good Governance and the Civil Services Commission on the training of an additional 1,000 civil service officers," he added.
Addressing the joint press conference, Maldivian Foreign Minister Zameer said, "India has always been one of our closest friends and a vital development partner."
He said the "enduring friendship" was built on a foundation of mutual trust and respect and has continued to flourish over the years.
"High-level exchanges between our countries have deepened our dialogue and cooperation in areas of shared interest. We remain dedicated to strengthening and advancing this mutually beneficial partnership," he said.
"Minister Dr Jaishankar and I agreed that much more needs to be done to promote trade and investment between the Maldives and India," he said.
Zameer continued, “Both sides are committed to establishing effective mechanisms to enhance economic cooperation, fostering a vibrant and prosperous partnership that will benefit both nations."
Zameer said he conveyed President Muizzu's proposal to begin negotiations on a free trade agreement between the Maldives and India.
"This agreement, alongside other economic and trade-related agreements, will facilitate trade liberalization and ease the risks of doing business in both our countries," he said.
Zameer said that India and the Maldives have also mutually agreed to further strengthen their partnership by continuing joint exercises and expanding training opportunities for officers from both countries, asserting that this reflects "our commitment to working together to ensure the security of our nations as well as ensuring the safety and stability of the Indian Ocean region."
India's relations with the Maldives were severely strained last year when President Muizzu ordered the departure of Indian military personnel stationed on three aviation platforms in the Maldives. The Indian military personnel were then replaced by civilians on May 10, the mutually agreed-upon date.
"On regional and multilateral issues of importance, our countries have a common understanding and are united in our efforts to resolve them. We agreed to continue our cooperation on issues ranging from combating terrorism, violent extremism, drugs, human trafficking, and the promotion and protection of human rights," Zameer said.
In his press statement, Jaishankar said that India and the Maldives "are not just close neighbors; we are also natural partners."
"Today, we are mutually invested in each other's development and progress. In a globalized and interconnected world, we see a lot of volatility and global tensions. Even as the world is recovering from the impact of the COVID pandemic, we have been confronted with new challenges arising from international conflicts," he said.
In this turbulent climate, India has been and will continue to be a stabilizing force for its allies, partners, and neighbors. India has notably assisted the Maldives in dealing with economic issues by providing financial and budgetary help, as well as assuring an ongoing supply of necessary products, he said.
According to Jaishankar, India's actions have been and will continue to be guided by its firm commitment to the philosophy of Sabka Saath, Sabke Vikas, which is—together, we prosper.
