‘India, UAE can broaden economic ties’
NEW DELHI : India and the United Arab Emirates are looking to identify and incorporate commodities to diversify trade between the two countries, UAE ambassador to India 8said in an interview. The diversification of traded commodities can broaden the scope of economic cooperation and make local currency transactions even more versatile, Alshaali said in an email interview.
He added that India, Europe, and the Middle East MoU for the India-Middle East-Europe Economic Corridor (IMEC) could potentially reduce shipping costs and facilitate efficient trade in goods and services. On the recent approval of 75,000 tonnes of non-basmati white rice for export from India to the UAE, he stated that Indian rice has earned a reputation for its quality and flavour, making it a preferred choice in the UAE and many other countries.
Edited excerpts: Local currency trade is picking up between India and the UAE. Do you think this will help usher in a new era of trade ties between the two countries? What is the vision for this going forward? Yes, the increasing trend of local currency trade between India and the UAE has the potential to usher in a new era of trade ties between the two nations.
This development signifies a commitment to strengthening economic cooperation and reducing reliance on foreign currencies, which can streamline the trade processes and reduce transaction costs. The vision includes expanding the use of our respective national currencies, the UAE dirham and the Indian rupee, in various trade transactions.
By promoting direct exchange rates, facilitating the settlement of trade transactions, and encouraging the use of local currencies, both countries aim to foster deeper economic integration. This move is expected to
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