In a significant move to enhance bilateral relations, India and Maldives have signed a Memorandum of Understanding (MoU) to introduce India’s Unified Payments Interface (UPI) in the Maldives. This development is expected to have a “very positive” impact on the tourism sector of the island nation, according to External Affairs Minister S Jaishankar.
During his three-day official visit to the Maldives, Jaishankar witnessed the signing of the MoU between the National Payments Corporation of India and the Maldives’ Ministry of Economic Development and Trade. The introduction of UPI is aimed at boosting tourism in the Maldives, with Jaishankar noting that it will make it easier for tourists to pay for things, thereby benefiting the local economy.
Jaishankar’s visit to the Maldives is part of efforts to reset the bilateral relationship with the archipelago nation. It is the first high-level trip from India after the pro-China President Mohamed Muizzu assumed office last year. The visit is seen as an attempt to address the setback in India’s relations with the Maldives, which suffered a major blow when President Muizzu demanded the withdrawal of Indian military personnel manning three aviation platforms in the Maldives.
The cooperation between India and Maldives extends beyond the introduction of UPI. Both countries have agreed to continue joint exercises and expand training opportunities for officers from both countries, reflecting their commitment to ensuring the security of their nations and the safety and stability of the Indian Ocean region.
In addition to the UPI agreement, Jaishankar and his Maldivian counterpart also signed another MoU for the training of an additional 1,000 civil services officers. Jaishankar emphasized that India’s actions are guided by its firm commitment to the philosophy of ‘Sabka Saath, Sabke Vikas’, which translates to ‘Together, we prosper’.
Additionally, India and the Maldives have agreed to collaborate on various infrastructure projects, including the Addu Reclamation & Shore Protection project. The Maldives’ opposition party, the Maldivian Democratic Party (MDP), has welcomed President Muizzu’s policy shift towards India and has called for an apology for his previous actions. Despite initial concerns about the change in leadership in the Maldives, President Muizzu has shown a strong interest in maintaining and strengthening ties with India, emphasizing the practical considerations that often drive bilateral relations.
This visit by Jaishankar marks a significant step in strengthening the enduring friendship between India and Maldives, built on a foundation of mutual trust and respect. It is expected to foster a vibrant and prosperous partnership that will benefit both nations.
