India and UAE to Finalise Local Currency Trade and Payment System Integration

India and UAE to Finalise Local Currency Trade and Payment System Integration

India/UAE: India and the United Arab Emirates (UAE) are set to finalise the implementation of bilateral trade settlement in local currencies and the integration of their payment systems. The decision was discussed at the India-UAE High-Level Joint Task Force on Investments held in Abu Dhabi, co-chaired by India’s Commerce and Industry Minister Piyush Goyal and Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA). The meeting reviewed progress on cooperation between the central banks of both nations, including developments related to Central Bank Digital Currencies (CBDCs), local currency trade, and payment system linkages. 

The task force also discussed joint investment projects such as Bharat Mart, a 2.7 million square foot complex in the Jebel Ali Free Zone that will serve as a platform for Indian exporters. Both sides reviewed investment-related challenges and explored new areas of cooperation, including maritime and space sectors. Since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, bilateral trade has grown substantially. In 2024–25, India’s imports from the UAE reached USD 63.4 billion (EUR 58.9 billion), while exports stood at USD 36.6 billion (EUR 34 billion). Non-oil trade between the two nations totalled nearly USD 38 billion (EUR 35.3 billion) in the first half of 2025, a 34 per cent increase from the same period in 2024, with both sides targeting USD 100 billion (EUR 92.8 billion) in non-oil trade by 2030. 

Source: Financial Express