India and the Maldives have signed an agreement to introduce the Unified Payments Interface (UPI) in the archipelago nation. This move is expected to have a significant positive impact on the Maldives’ tourism sector, according to India’s External Affairs Minister, S. Jaishankar. The Memorandum of Understanding (MoU) was signed on Friday during Jaishankar’s three-day official visit to the Maldives.
India Introduces UPI In Maldives
A useful meeting with Economic Development and Trade Minister @em_saeed, Minister of Finance @mshafeeqmv and Ahmed Munawar, Governor of the Maldives Monetary Authority.
Exchanged views on enhancing our economic and trade partnership as well as development cooperation. pic.twitter.com/6p4joXU8sj
— Dr. S. Jaishankar (@DrSJaishankar) August 10, 2024
UPI, developed by the National Payments Corporation of India (NPCI), is an instant real-time payment system that facilitates inter-bank transactions through mobile phones. It has revolutionised digital transactions in India, bringing financial inclusion to new levels. 40 per cent of the world’s real-time digital payments now take place in India, thanks to UPI. The introduction of this system in the Maldives would bring similar benefits, especially in the tourism sector.
Tourism is the primary source of economic activity for the Maldives, contributing nearly 30 per cent of the nation’s GDP and generating over 60 per cent of its foreign exchange. The introduction of UPI is expected to make transactions easier for tourists, particularly those from India, and boost the overall ease of doing business in the Maldives.
Tangible Benefits In The Partnership
Privileged to call on President Dr Mohamed Muizzu. Conveyed greetings of PM @NarendraModi.
Committed to deepen India-Maldives ties for the benefit of our people and the region.@MMuizzu pic.twitter.com/FSP1kqefbx
— Dr. S. Jaishankar (@DrSJaishankar) August 10, 2024
Jaishankar’s visit to the Maldives is the first high-level trip from India since Mohamed Muizzu, the Maldives’ pro-China president, assumed office last year. The visit aims to reset the bilateral relationship between the two countries. As per reports by Business Standard, Jaishankar emphasised that India’s partnership with the Maldives is based on a deep desire to work together for each other’s welfare and interests. He highlighted that this partnership has enabled both nations to respond swiftly and effectively to challenges, delivering tangible benefits to their people.
During the visit, Jaishankar also inaugurated six High Impact Projects in the Maldives, covering areas such as street lighting, mental health, children’s speech therapy, and special education. He also welcomed the renewal of an MoU between the National Centre for Good Governance and the Civil Services Commission, which will see the training of an additional 1,000 civil service officers.
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Business Standard reported that Maldivian Foreign Minister Moosa Zameer acknowledged the strong relationship between India and the Maldives. He described India as one of the Maldives’ closest friends and a vital development partner. Zameer also expressed a commitment to strengthening economic cooperation between the two countries. This agreement, alongside other economic and trade-related agreements, is expected to facilitate trade liberalisation and ease the risks of doing business in both countries.
Cover Image Courtesy: Canva (Representative Image)