Published Date: 1 November, 2023
PM Modi’s ‘Fintech Diplomacy’ Push in Malaysia: Preparation for Export of UPI and Digital Public Infrastructure
Prime Minister Narendra Modi’s visit to Malaysia discussed many issues, but one thing clearly emerged – India’s diplomacy now not only includes traditional issues, but ‘Fintech Diplomacy‘ i.e. financial technology diplomacy has also become a major part. A key objective of this visit was to prepare the framework for exporting India’s successful ‘Digital Public Infrastructure’ (DPI), such as UPI (Unified Payments Interface), to Malaysia and the entire ASEAN region.
Now the question arises, what exactly is ‘Fintech Diplomacy’? In simple words, it is the diplomatic effort where a country shares its financial technology (fintech) successes and solutions with other countries and enhances international cooperation. For India, it is the medium to take products like UPI and other digital products of its generation like Aadhaar and DigiLocker to the global platform.
A New Chapter in Digital Diplomacy
Modi, addressing the Indian community and Malaysian leadership in Kuala Lumpur, said that India’s digital model will no longer remain limited to domestic success but will be implemented in other countries as well.
- Strength of UPI: In India, millions of transactions take place daily through UPI. Its success has made it a reliable and secure payment system.
- Global Expansion: Countries like Bhutan, Singapore, and the UAE already have UPI active. Now Malaysia is set to join this list.
Clear indications of this were received in the discussions with Malaysia. India emphasized linking its digital payment system with Malaysia and increasing technical cooperation. There are several advantages behind this. First, a large number of Indian diaspora live in Malaysia and tourists visit. If UPI payments start being used there, transactions will become easier and more secure. Second, this step will also strengthen Malaysia’s own digital economy.
Importance of ‘Fintech Diplomacy’
This initiative by Modi is not just economic but also diplomatic.
- Digital Public Infrastructure (DPI): India’s DPI model—which includes UPI, Aadhaar, and DigiLocker—is now being made available to other countries.
- Expansion of Soft Power: Just as Yoga and Ayurveda became India’s cultural identity, UPI and digital infrastructure are emerging as India’s technological identity.
- Economic Benefits: Indian companies will gain new markets, while Malaysia will benefit from a secure, fast, and low-cost payment solution.
But India’s goal is not limited to just one country. Malaysia is a major and developed country of ASEAN. The success of India’s digital technology here can set an example for the entire region. UPI is already linked with countries like Singapore. By connecting with Malaysia, India wants to expand its digital network across Southeast Asia.
There is also a major economic aspect to this ‘Fintech Diplomacy’. When India’s digital infrastructure is adopted in other countries, it creates new opportunities for Indian tech companies, startups and IT professionals. System maintenance, training and development of new services – all this can become a new type of ‘technology export’.
Certainly, there are challenges on this path as well. Every country has its own regulatory system, data security laws and existing banking system. India will have to make its solutions flexible according to Malaysia’s needs. At the same time, attention will also have to be paid to local participation and technology transfer so that this cooperation does not seem one-sided.
In short, ‘Fintech Diplomacy’ was a major subject in Prime Minister Modi’s visit to Malaysia. This reflects India’s new economic and technological diplomacy, where the story of digital success is being promoted as soft power. The export of UPI and digital public infrastructure will not only strengthen India’s global image but also provide a modern and strong basis for bilateral relations. Malaysia could prove to be the first link in this ambitious plan.
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