UPI's introduction to increase Indian tourists to Maldives by 10-15% says HC G. Balasubramanian

Indian High Commissioner to Maldives G.Balasubramanian has said that with the introduction of UPI in Maldives, the number of Indian tourists is expected to grow by 10-15%. Agreements were exchanged during Prime Minister Narendra Modi’s visit last week on a network-to-network pact between India’s National Payments Corporation (NPCI) and the Maldives Monetary Authority for introduction of UPI.

Speaking to WION's Sidhant Sibal, HC Balasubramanian said, "It would be easier, rather than converting and doing it would be easier to use their own current accounts, their savings bank account, to book resorts over here".

Maldivian President Mohamed Muizzu has approved the introduction of UPI following a Cabinet recommendation in October 2024. Terming the relationship "wonderful", he said, "the terms of reference for the free trade agreement have been signed....the negotiations would be concluded soon". Announcement on FTA was another key announcementduring PM Modi's visit to the country.

Here's the full interview:

How do you see India's support to Maldives?

We have had a wonderful relationship with Maldives, and our leadership has nurtured this relationship with very great efforts and importance that has been paid by both the leadership. Visit of the Prime Minister is a landmark visit, because he has been invited as the first head of state to have a state visit under the presidency of President Muizzu and within eight months of the previous state visit of President Muizzu, this is taking place, reflecting the strength of the relationship. Two measures have been announced and signed. The terms of reference for the free trade agreement have been signed, and our commerce secretary was here earlier this month to finalize the terms of reference, we are very confident that the FTA will be finalised soon. The negotiations would be concluded soon. We also have an implementation agreement between NPCI and its counterpart here in Maldives for onboarding the UPI. So now the technical part of it, regarding the QR code and other things will be worked out, and I'm sure soon our tourists who come over from India would be in a position to benefit out of this particular agreement. We have also signed agreements on fisheries, on weather, meteorology and Pharmacopeia. Indian Pharmacopoeia has now been recognised in Maldives. Also, We are already the largest trading partner for Maldives. So these things would certainly give further fillip, to our relationship,

You mentioned the usage of UPI. We also know that the line of credit is in rupee denomination, and yesterday, the Bank of Maldives announced that accounts can be opened in Indian rupee as well. What's the big message on the usage of national currencies when it comes to trade and how it will benefit the people of India and Maldives?

Today, Indian tourist have to pay using a different currency to come over and book his or her place in the resorts over here, the UPI would certainly facilitate them, and it would be easier, rather than converting and doing it would be easier to use their own current accounts, their savings bank account, to book resorts over here. And that would certainly increase the number of tourists at least by 10 to 15% is what we hope for, coming over to Maldives. Apart from this, certainly the line of credit that has been provided is also an ongoing relationship as far as the Development Partnership is concerned. We are one of the largest development partners of Maldives, both in terms of infrastructure and in terms of capacity building. Our prime minister announced the $565 million denominated in Indian rupees, a line of credit for various infrastructure projects that Maldives would be prioritizing. Earlier, also, we have given various lines of credit, buyers credit, grants. So our partnership has been going on, and this is yet another leaf in the partnership which will strengthen it,

A complete turnaround in the relationship, a textbook case of how Indian diplomacy can ensure that the relationship can come back on track, because 2023 looks like a distant past now. So, if you can perhaps talk about this turnaround and how Prime Minister Modi's visit has been a milestone in bringing this turnaround as well.

As you know, India and Maldives are historical and geographical partners. Our relationship actually started during Indus Valley civilization itself in Lothal, the port district of Gujarat, it had relationships with atolls in North Of Maldives. So our ancestors have actually had relationships. Whenever there has been a crisis, whether it is man made or whether it is natural calamity, India has been the first responder, be it the 1988 operation Cactus, or when they ran out of water in 2014 because of an accident, it was us who provided. Covid, we provided, we even provided the transport bubble during covid to sustain the tourism over here. So our relationship is very strong, irrespective of whatever blips that happen, it would only be natural for both the countries to continue working and improving the relationship. There is a huge connect between the people and everybody understands how our relationship has been and how India has been a friend. We continue to do so.

What is next for the relationship between India and Maldives, especially in the context of people-to-people relationship as Indian tourists to Maldives on a regular basis. Many Maldivians travel to India for health, for education. So if you can shed some light briefly

The vision document that was brought out during the state visit of President Muizzuto India in October 2024 laid the foundation of the growing relationship. It was a comprehensive partnership on economic and maritime security. This visit of our prime minister to Maldives again has further cemented this relationship. The kind of agreements that have been signed and the kind of ties and negotiations that have been held. The discussions certainly focus on how we look at further strengthening it. The 2 state visits will provide us the platform on which we will further go ahead.