India to launch UPI service in Maldives, says Jaishankar
What's the story
India has signed a Memorandum of Understanding (MoU) with the Maldives, to implement the Unified Payments Interface (UPI) system in the island nation. This initiative is anticipated to significantly boost the Maldivian tourism industry. The agreement was formalized on Friday during External Affairs Minister S Jaishankar's three-day official visit to the country.
Digital revolution
UPI: A game-changer in digital transactions
The UPI system, an innovation by the National Payments Corporation of India (NPCI), enables instant inter-bank transactions via mobile phones. Jaishankar lauded UPI as a game-changer in digital transactions and financial inclusion in India. He stated, "Today 40% of the world's real-time digital payments take place in our country." The minister expressed hope for a successful implementation of this digital innovation in the Maldives.
Tourism boost
Potential impact on Maldivian tourism
Jaishankar highlighted that the introduction of UPI could significantly enhance the Maldivian tourism sector, which accounts for nearly 30% of the country's GDP and over 60% of its foreign exchange earnings. He stated, "I wish the very best to stakeholders on both sides and hope that we will soon see the first UPI transaction here." This move underscores India's commitment to strengthening bilateral ties with the Maldives through technological advancements.
Information
Jaishankar also inaugurated six high-impact projects
Jaishankar emphasized that India's partnership with the Maldives is rooted in a "deep desire to work together for each other's welfare and interests." During his visit, Jaishankar also inaugurated six high-impact projects in areas like street lighting, mental health, children speech therapy, and special education.
Enhanced cooperation
India and Maldives renew MoU, strengthen ties
Jaishankar welcomed the renewal of an MoU between the National Centre for Good Governance and Civil Services Commission on training an additional 1,000 civil services officers. Maldivian Foreign Minister Moosa Zameer echoed Jaishankar's sentiments, describing India as one of their "closest friends and a vital development partner." He expressed commitment to fortifying this mutually beneficial partnership and boosting economic cooperation between both nations.
Trade liberalization
Maldives proposes Free Trade Agreement with India
Zameer conveyed President Muizzu's proposal to initiate discussions on a Free Trade Agreement between the Maldives and India, which he believes will promote trade liberalization and mitigate business risks in both countries. The two nations have agreed to continue joint exercises and expand training opportunities for officers from both countries. This reflects their commitment to ensuring national security and stability in the Indian Ocean region.