India, UAE may trade in INR soon

Talking about India and UAE trade relations, UAE Ambassador to India Abdulnasser Alshaali said that his country is India's third-largest trade partner.

New Delhi, Dec 23: India under the Modi government has been quite assertive not just in its global presence but asserting its economic clout as well. Earlier this year the nation allowed rupee settlement of international trade for export promotion schemes. Now, it is negotiating with the UAE to make the national currency the tool for trade settlements.

Nonetheless, it's not just that India is trying to make Indian Rupees an international currency of repute and trust. Several countries too are interested in dealing in Indian Rupees as they are falling short of US dollars and for them Indian national currency is a safe paying mechanism. This also shows India's astute economic growth and acceptance in global comity.

Great partnership

Talking about India and UAE trade relations, UAE's Ambassador to India Abdulnasser Alshaali said that his country is India's third-largest trade partner. Only the US and China have a bigger trade share than India when it comes to trading with the Gulf nation. Nevertheless, India is a major trader not just for the UAE but for other nations in the Gulf as well.

Keeping trade interests in mind, India and the Gulf nations are willing to explore free trade agreement. To meet the end the GCC-India free trade agreement (FTA) is also being negotiated. Apart from traditional trade, India and UAE are also talking on defence technology transfer that could help the gulf nation as India is emerging as a defence tech powerhouse.

Indo-UAE ties deeper now

India has though been a traditional partner with UAE, the relations have gone deeper and better over the last years. The bilateral relations have become stronger than ever. There are more high-level visits between the two countries than ever to create positive momentum. Not just the visits, the two nations signed the Comprehensive Economic Partnership Agreement (CEPA).

Additionally, India and UAE have formed platforms like I2U2 (Israel-India-United States-UAE) which is working great for its set goals. Nonetheless, India invited UAE as a guest country to the G20 and showed how important the partnership is with the gulf nation.

Rupee settlement mechanism

Elaborating on the Rupee settlement mechanism the UAE ambassador says that there is an ongoing discussion. The two nations have already shared the documents with one another on the proposal and the technical team is doing the required analysis. The decision on when to unfold the Rupee settlement mechanism will be made soon.