Foreign Affairs Minister S Jaishankar stated that the Unified Payments Interface, which India and the Maldives have agreed to implement, will have a “very positive” effect on the country’s tourist industry.
Friday marked the signing of the Memorandum of Understanding during Jaishankar’s three-day official visitation in the Maldives.
“Witnessed signing of MoU between (the) National Payments Corporation of India and (the) Ministry of Economic Development and Trade of Maldives on (the) introduction of (a) digital payment system in the Maldives,” he said in a post to X.
The Unified Payment Interface (UPI), created by the National Payments Corporation of India (NPCI), is a real-time rapid payment system that makes it easier to conduct interbank transactions using mobile devices.
Addressing a press conference with his Maldivian counterpart Moosa Zameer after their “productive discussions”, Jaishankar said that India, through its UPI, has “revolutionised digital transactions”.
Stressing that it has taken financial inclusion in India to new levels, he said “Today 40 per cent 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 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 main source of economic activity for the Maldives, contributing nearly 30 per cent of the GDP and generating more than 60 per cent of foreign exchange.
Jaishankar’s visit aims to reset the bilateral relationship with the Maldives and is the first high-level trip from India after the archipelago nation’s pro-China president, Mohamed Muizzu, assumed 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.
In a post on X, Jaishankar also said, “Jointly inaugurated six High Impact Projects in areas of street lighting, mental health, children speech therapy and special education.”
“Welcome renewal of MoU between National Centre for Good Governance and Civil Services Commission on (the) training of additional 1,000 civil services 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, adding that both sides are committed to establishing “effective mechanisms to enhance economic cooperation, fostering a vibrant and prosperous partnership that will benefit both the 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.
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’, Jaishankar said.
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