India and UAE Pursue Expansion of Rupee-Dirham Trade for Mutual Economic Gains

India and the UAE are exploring avenues to expand rupee-dirham trade, a move that could significantly impact bilateral commerce, stated Commerce and Industry Minister Piyush Goyal. This initiative is also expected to facilitate more cost-effective remittances from the UAE to India. Goyal emphasized that discussions have taken place with the Reserve Bank of India and the central bank of the UAE to expedite and scale up rupee-dirham trade.

Trade conducted in domestic currencies could result in a savings of at least 5 percent on all transactions between the two nations. Goyal, attending the 11th meeting of the India-UAE High-Level Task Force on Investments, further disclosed that the two sides deliberated on establishing food and industrial parks in India.

The nations had already enacted a free trade agreement in May of the previous year to invigorate bilateral trade and economic relations. Bilateral trade between India and the UAE rose to USD 84.9 billion in 2022-23 from USD 72.9 billion in the preceding fiscal year.

Goyal also highlighted that the agreements signed during this meeting will foster trade expansion and bolster investments. He affirmed that both countries are addressing issues flagged by the business delegation in a prompt manner. Regarding the free trade agreement, Goyal mentioned that the review process has been initiated. Despite a dip in petroleum prices this year, he noted an upswing in non-petroleum trade, showcasing the growing relations between the two nations. Expectations are high for significant announcements in the near future.