India and the Maldives signed an agreement on Friday to introduce the Unified Payments Interface (UPI) in the island nation, a move that external affairs minister S Jaishankar highlighted as a boost for tourism.
The memorandum of understanding (MoU) was signed between the National Payments Corporation of India and the Maldives’ Ministry of Economic Development and Trade, following discussions between Jaishankar and his Maldivian counterpart, Moosa Zameer.
Jaishankar’s three-day visit to the Maldives marks his first trip since President Mohamed Muizzu took office in November 2023. The visit is seen as an effort to reset bilateral relations, which have faced challenges due to Muizzu’s steps to reduce reliance on India and strengthen ties with China.
Additionally, the two nations renewed an MoU between India’s National Centre for Good Governance and the Maldives’ Civil Service Commission, expanding the training program for Maldivian civil servants with 1,000 additional slots.
During a joint press briefing, Jaishankar emphasized UPI’s role in advancing financial inclusion, noting that 40% of global real-time digital payments occur in India. He described the MoU as a “first step towards bringing this digital innovation to the Maldives,” and expressed optimism about the positive impact on tourism.
“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 further added.
The two ministers also inaugurated six community development projects across three hospitals in the Maldives, funded by Indian grants. These projects include a speech therapy unit, a mental health unit, and a child development center.
Despite recent strains in bilateral ties, particularly after Muizzu’s request to withdraw Indian military personnel involved in humanitarian missions, India has continued its development aid to the Maldives. On Saturday, India will hand over 28 water and sewage projects, as well as a reclamation and shore protection project in Addu City.
Zameer expressed gratitude for India’s support, including the $50 million treasury bill rollover, and acknowledged India as a crucial tourism market for the Maldives. He also underscored the importance of ongoing defense and security cooperation, which includes joint efforts to combat terrorism, extremism, drugs, and human trafficking.
Jaishankar reaffirmed India’s commitment to the Maldives, describing it as a key component of India’s ‘Neighborhood First’ policy. He is expected to meet with President Muizzu and other Maldivian ministers on Saturday to discuss further economic, defense, and financial cooperation.
Amid global challenges, Jaishankar assured that India remains a “pillar of stability” for its friends, partners, and neighbors.
