source - x/@DrSJaishankar
New Delhi: India and the Maldives have taken a significant step towards enhancing their bilateral relationship with the signing of an agreement to introduce the Unified Payments Interface (UPI) in the Maldives. The memorandum of understanding (MoU), signed on Friday, aims to bring India’s innovative digital payment system to the Indian Ocean archipelago, a move that External Affairs Minister S Jaishankar said will have a positive impact on tourism.
The MoU was formalized between the National Payments Corporation of India and the Maldives’ Ministry of Economic Development and Trade following Jaishankar’s meeting with his Maldivian counterpart, Moosa Zameer. Jaishankar’s three-day visit to the Maldives, his first since the government of President Mohamed Muizzu took office in November 2023, is seen as an effort to reset bilateral ties. Relations had recently cooled as Muizzu took steps to reduce the Maldives’ dependence on India while moving closer to China.
Despite these challenges, Jaishankar emphasized the importance of the UPI agreement, noting that 40% of the world’s real-time digital payments occur in India. He described the MoU as the “first step towards bringing this digital innovation to the Maldives” and expressed hope that the first UPI transaction in the Maldives would occur soon. Jaishankar underscored that the introduction of UPI would greatly benefit the tourism sector, a crucial part of the Maldivian economy.
In addition to the UPI agreement, the two nations renewed another MoU between India’s National Centre for Good Governance and the Civil Service Commission of the Maldives, providing an additional 1,000 slots for training Maldivian civil servants. This collaboration underscores India’s commitment to capacity building in the Maldives.
During a joint media briefing, the ministers also inaugurated six community development projects, funded by Indian grants. These initiatives include a speech therapy unit, a mental health unit, and a child development center at three different hospitals. Jaishankar’s visit also marked the continuation of India’s development aid to the Maldives, despite recent strains in the relationship.
On Saturday, India is set to hand over 28 water and sewage projects, along with a reclamation and shore protection project in Addu City. These projects highlight India’s ongoing support for the Maldives’ infrastructure development.
Zameer expressed gratitude for India’s support, including the rollover of treasury bills worth $50 million, which he described as vital budgetary support. He acknowledged India as an important source market for Maldivian tourism and reaffirmed the Maldives’ commitment to defense and security cooperation with India. This partnership, he noted, is essential for ensuring the security and stability of the Indian Ocean region.
Jaishankar, in turn, reaffirmed India’s view of the Maldives as “one of the cornerstones of our ‘Neighborhood First’ policy.” He also emphasized India’s role as an “anchor of stability” for its friends, partners, and neighbors in an increasingly tumultuous global environment.
Jaishankar’s visit will continue with meetings scheduled on Saturday with President Muizzu and the Maldivian ministers for economic development, finance, and defense, furthering discussions on strengthening ties between the two nations.
