New Delhi: India and the United Arab Emirates will soon start trade settlement in India rupee and dirham.
UAE ambassador Abdulnasser Jamal Alshaali said currently, both the countries are engaged in technical discussion to finalise local currency agreement for trade.
“The technical conversation is ongoing,” said the UAE ambassador said in an interview to Hindustan Times.
Rupee-dirham trade
Alshaali said there has been an agreement between India and UAE to “settle a certain [amount] of trade, just not having to go through a third currency.”
“Let’s see, this conversation is an ongoing conversation at the technical level and how they can proceed with it. We also have the remittance facility to make it more direct and easier. There’s still technical issues to be discussed and agreed on,” he added.
The statement comes within a week after officials from India’s central bank – Reserve Bank of India (RBI) – held discussion with their counterparts in UAE to settle trade in rupee-dirham.
As per reports, India and UAE are expected to sign Memorandums of Understanding (MoUs) anytime this month.
Last month, officials of RBI and UAE central bank completed groundwork for the introduction of bilateral trade in their local currency.
A concept paper on trade settlement in rupee-dirham was prepared by India and last year, it was shared with UAE.
Target $100 billion trade with India by 2027
Alshaali said by 2027, the UAE targets $100 billion non-oil trade with India. Currently, non-oil trade between the two countries is at $44 billion.
“The reason we use this figure is because there is a strong partnership in terms of energy security and oil export to India. The figure that we focus on is non-oil,” the UAE ambassador said.
He further said the UAE wants to make sure that it is investing in various sectors that are important to both countries irrespective of them falling within the CEPA.
“We want to make sure we expand the aviation ties, we want to invest in food security and by extension, food park projects in different states. Part of this also is taking the CEPA and raising awareness about it. It’s been almost a year since the implementation of the CEPA and you want to max out on that and you want to see if there are more things to be done,” Alshaali was quoted as saying.