India and the UAE have begun settling bilateral trade in their local currencies, with India's largest refiner paying rupees to Abu Dhabi National Oil Company (ADNOC) in exchange for buying one million barrels of oil from the UAE.
India in July signed a deal with the United Arab Emirates that would allow trade to be settled in rupees rather than dollars, bolstering India's efforts to reduce transaction costs by eliminating dollar remittances.
The bilateral trade volume between India and the UAE reached $84.5 billion between 2022 and 2023. India is keen to reach similar local currency payment agreements with other countries as it looks to boost exports amid slowing global trade.
Source (Alkhaleej Emirati Newspaper, Edited)
