India, UAE join hands for trade in local currencies

Sandeep Dikshit

New Delhi, July 15

India and the UAE on Saturday decided to strengthen the use of local currencies for cross-border transactions, interlink their payment and messaging systems, put more oil in the Gulf nation’s strategic crude reserves stored in India and finalise plans for food corridor projects in India.

Eyeing trade milestone

Current $85 billion

Target $100 billion

The three MoUs on the framework to promote the use of local currencies for cross-border transactions, interlinking the payment and messaging systems and establishing the IIT-Delhi campus in Abu Dhabi were inked in the presence of Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan following delegation-level and one-on-one talks in Abu Dhabi.

In a special gesture, the Prime Minister was welcomed by Crown Prince of Abu Dhabi Khaled bin Mohamed bin Zayed Al Nahyan at the airport. The PM was conferred the UAE’s highest award, the Order of Zayed Award, in 2019.

The talks between PM Modi and Sheikh Mohamed also covered the issue of enhanced defence exchanges, sharing of experiences, training and capacity-building, according to the joint statement issued after the talks. The focus also was on bilateral cooperation in the fight against terrorism, terrorist financing and extremism.

They also resolved to promote the reliability and resilience of food supply chains and expand food and agriculture trade, including through food corridor projects in India.

In an indication of trust, the Abu Dhabi National Oil Company (ADNOC) stores crude at two of India’s strategic reserves, which it is also allowed to export. The joint statement said the amount being stored would be increased as part of stepped up investments across the entire energy spectrum. Sultan Al Jaber, ADNOC CEO, separately met PM Modi as the concurrent president-designate of CoP28. “Jaber briefed the PM on the UAE’s approach to this important meeting,” it said.

Three agreements signed

• Establishment of a framework to promote the use of local currencies for cross-border trade
• Bilateral cooperation on interlinking payment and messaging systems
• Working on establishing IIT-Delhi campus in Abu Dhabi

Focus on food security

• The two sides resolved to promote the reliability and resilience of food supply chains and expand food and agriculture trade, including through food corridor projects in India