New Delhi was abuzz with strategic conversations as India and the UAE set their sights on enhancing the rupee-dirham trade mechanism, a development signaling their deepening economic partnership.
The discussions took place during the 11th meeting of the India-UAE High-Level Task Force on Investments. Piyush Goyal, India’s Commerce and Industry Minister, revealed the joint strategy crafted by the central bank of the UAE and the Reserve Bank of India (RBI). Goyal remarked that, this refined mechanism aims to streamline the remittance channels between two nations, ensuring both efficient and cost-effective funds transfer.
By emphasizing trade in their respective domestic currencies, India and the UAE aim to achieve significant commercial advantages, potentially reducing associated trade costs by up to 5%.
Recent bilateral developments provide a favorable backdrop to these discussions. Following the inauguration of a free trade agreement last year, trade between the two nations surged impressively, climbing from $72.9 billion in 2021-22 to $84.9 billion in 2022-23.
The dialogues on Thursday resulted in the ratification of two strategic agreements intended to further enhance trade and boost investments. Goyal, emphasizing the significance of the agreements, said, “We are accompanied by a large business delegation who have flagged issues that both sides experienced over the years that we are resolving on mission mode.”
Commenting on the review of the free trade agreement, Goyal acknowledged the slight decline in trade volumes attributed to fluctuating petroleum prices but also highlighted the encouraging growth in non-petroleum sectors. “But we have a task force that is assessing the successes and the potential for the future,” he stated.
With confidence in the burgeoning India-UAE relationship, Goyal shared that, beyond economics, the two countries share a robust bond that is both dynamic and promising. India eagerly anticipate unveiling major collaborative announcements in the near future.
The strategic partnership between India and the UAE exemplifies how nations can collaboratively navigate the complexities of global commerce, offering a vision of mutual growth and shared success.
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