India Signs 6 MoUs with Maldives to Enhance Cooperation

Current Context: On July 25, 2025, India and Maldives signed 6 key MoUs in Malé, the capital of Maldives, during Prime Minister Narendra Modi’s state visit. 

• The agreements marked a strategic reset in bilateral ties and celebrated 60 years of diplomatic relations.

6 MoUs Signed:

• Fisheries, Weather Forecasting (IITM–MMS): Promote sustainable tuna and deep-sea fishing, eco-tourism, aquaculture development, and cold storage infrastructure.
• Meteorology: Collaborate on weather modeling, cyclone early warning systems, and climate science.
• Digital Public Infrastructure: Share India’s population-scale digital platforms to enhance governance and service delivery in Maldives.
• UPI rollout (NPCI–Maldives Monetary Authority): Launch UPI in Maldives via NPCI and Maldives Monetary Authority for cross-border remittances.
• Pharma exports (Indian Pharmacopoeia): Streamline drug approvals and boost Indian pharma exports to Maldives.
• ₹4,850 Cr Line of Credit (first rupee-denominated to Maldives): Support infrastructure projects with 40% debt relief through an amendatory agreement.

Highlights:

• Debt Relief: 40% reduction in Maldives' annual repayment (from $51M to $29M)
• Trade Push: Launch of Free Trade Agreement (FTA) & Investment Treaty talks
• Projects Handed Over: Housing units, Addu City infrastructure, defence equipment
• 60-Year Diplomatic Ties: Stamp issued; ceremonial welcome to PM Modi.

Question:

Q.1 What key digital initiative was part of the agreements signed between India and Maldives?
a) E-passport rollout
b) Cybersecurity MoU
c) Unified Payments Interface (UPI) rollout
d) Common Digital Identity Card

Answer: c) The MoU between NPCI and the Maldives Monetary Authority enables UPI’s rollout in the island nation, marking a major step in digital connectivity.