Maldives could not escape the magic of UPI, Muizzu was running away and fell behind India due to Jaishankar’s move.

return to the era of friendship

However, the situation has changed in recent months. Under the leadership of President Muizzu, Maldives has attempted to improve relations with India. his/her decision came due to the economic crisis, India’s growing strategic role and lack of expected support from China. Recently, Foreign Minister S. Jaishankar, during his/her three-day visit to Maldives, announced that India and Maldives have signed an MoU under which Unified Payment Interface (UPI) will be implemented in Maldives. Jaishankar said, ‘This is the first step towards bringing digital innovation to Maldives. This will also have a positive impact on tourism. Maldives Foreign Minister Musa Jamir also described India as a close friend and development partner, which is based on mutual trust and respect.

he/she said during his/her visit to Maldives, ‘As you all know, India has truly revolutionized digital transactions through its Unified Payments Interface (UPI). It has taken financial inclusion to new levels in India. Today, 40 percent 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 by signing the MoU today, we have taken the first step towards bringing this digital innovation to the Maldives. I wish all the best to the stakeholders on both sides and hope that we will see the first UPI transaction here soon. This will have a very positive impact on tourism.

New possibilities for cooperation

There have been several reasons for the improvement in relations between India and Maldives. First, there is a need for financial assistance. Maldives has sought financial assistance from India, including currency swap facilities. Taking a step in this direction, India has offered a currency swap facility of $750 million. Additionally, there are possibilities of a free trade agreement between Maldives and India to promote trade and economic activities. Jamir said such agreements would facilitate trade liberalization and reduce trade risks between the two countries.

On the Maldives visit, Jaishankar had said, ‘Maldives is one of the cornerstones of our ‘Neighborhood First’ policy, it is one of our vision oceans, as well as our commitment towards the Global South. In short, in the words of Prime Minister Narendra Modi, the neighborhood is a priority for India and the Maldives in the neighborhood is a priority. We also share the closest bonds of history and kinship.

political maturity

Political maturity also plays an important role in the improvement in relations between India and Maldives. Jaishankar also held a meeting with the leaders of the opposition party Maldives Democratic Party (MDP) during his/her visit to Maldives, which shows that there is a new seriousness in the dialogue between the two countries. This development is more stable and positive than during Yameen’s time.

Why did Maldives need UPI?

The inclusion of UPI payment system in Maldives is an important step. This will not only simplify digital transactions but will also revolutionize the tourism sector. Maldives is a major tourist destination and it will become easier for Indian tourists to transact through UPI. This will also strengthen the economy of Maldives.