India and the Maldives have entered into an agreement to introduce the Unified Payments Interface (UPI) in the Maldives, a move expected to have a “very positive” impact on the nation’s tourism industry, according to External Affairs Minister S. Jaishankar. This Memorandum of Understanding was formalized on Friday during Jaishankar’s three-day official visit to the Maldives.
Jaishankar announced on X, “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.” The UPI system, developed by the National Payments Corporation of India (NPCI), is a real-time payment system designed to facilitate inter-bank transactions through mobile devices.
During a press conference alongside his Maldivian counterpart, Moosa Zameer, after their “productive discussions,” Jaishankar emphasized that India’s UPI has “revolutionised digital transactions” and significantly advanced financial inclusion within the country. “Today 40 percent of the world’s real-time digital payments take place in our country,” Jaishankar noted. He expressed satisfaction with the signing of the MoU, stating, “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 further added, “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.”
Tourism is a critical economic sector for the Maldives, contributing nearly 30% to the GDP and generating over 60% of the nation’s foreign exchange.
Jaishankar’s visit is seen as an effort to recalibrate bilateral relations with the Maldives and marks the first high-level engagement from India since the pro-China President Mohamed Muizzu assumed office last year. Jaishankar remarked, “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.”
He highlighted that this partnership has consistently delivered results and tangible benefits to the people, in alignment with their “wishes, aspirations, and priorities.” Additionally, in another post on X, Jaishankar mentioned, “Jointly inaugurated six High Impact Projects in areas of street lighting, mental health, children speech therapy and special education,” and welcomed the renewal of the MoU between the National Centre for Good Governance and the Civil Services Commission, which will facilitate the training of an additional 1,000 civil service officers.
Maldivian Foreign Minister Zameer expressed appreciation for the enduring friendship between the two nations, calling India “one of our closest friends and a vital development partner.” He acknowledged the mutual trust and respect underpinning this relationship, which has flourished over the years. Zameer also emphasized that high-level exchanges have deepened dialogue and cooperation in areas of shared interest and affirmed both countries’ commitment to advancing this mutually beneficial partnership.
He conveyed that much more needs to be done to boost trade and investment between the two countries, with both sides dedicated to establishing mechanisms that enhance economic cooperation and foster a prosperous partnership. Zameer mentioned that President Muizzu has proposed initiating negotiations for a Free Trade Agreement between the Maldives and India. “This agreement alongside other economic and trade-related agreements will facilitate trade liberalisation and ease the risks of doing business in both our countries,” he noted.
Furthermore, Zameer stated that both nations have agreed to strengthen their partnership through continued joint military exercises and expanded training opportunities for officers, reflecting a shared commitment to security and stability in the Indian Ocean region.
India’s relations with the Maldives had faced challenges last year when President Muizzu requested the withdrawal of Indian military personnel from three aviation platforms in the Maldives. These military personnel were subsequently replaced by civilians by May 10, the mutually agreed deadline.
On broader regional and multilateral issues, Zameer highlighted the countries’ shared understanding and united efforts in addressing challenges such as terrorism, violent extremism, drug trafficking, human trafficking, and human rights promotion.
Jaishankar reiterated that India and the Maldives “are not just close neighbours, we are also natural partners.” He noted that in today’s globalized and interconnected world, marked by volatility and tensions, India has been and will continue to be a stabilizing force for its friends, partners, and neighbors. He cited India’s support to the Maldives in dealing with economic challenges, including financial assistance, budgetary support, and the uninterrupted supply of critical items, as evidence of India’s commitment to the philosophy of ‘Sabka Saath, Sabka Vikas’ (Together, We Prosper).
 in the Maldives, a move expected to have a "very positive" impact on the nation's tourism industry, according to External Affairs Minister S. Jaishankar.){kind=link}