India and the UAE Sign Important Agreements Regarding Climate Change and Trade Settlement in Local Currencies – 5 Points

To further strengthen the ties between the two nations, Prime Minister Narendra Modi met privately with Sheikh Mohamed bin Zayed Al Nahyan, the president of the United Arab Emirates.

On the second day of his two-day visit, PM Modi paid a ceremonial welcome to Nahyan at the presidential palace of Qasr-Al-Watan.

India and the UAE have agreed to promote their national currencies for use in cross-border trade settlement and connect the Indian Unified Payments Interface with the Instant Payment Platform (IPP) of the Gulf nation.

After their meeting, PM Modi said that since the two nations signed the Comprehensive Economic Partnership Agreement in 2022, trade between India and the United Arab Emirates has increased by 20% and that the settlement of trade in local currencies would demonstrate better economic cooperation and confidence between the nations.

Significant agreements and transactions between India and the UAE
1. Establishing IIT-Delhi Abu Dhabi – In terms of education, the ministries of the two nations have chosen to establish an IIT-Delhi branch in Abu Dhabi. When PM Modi announced this news on Twitter, he said, “This represents a huge step in our educational internationalization and is tribute to India’s capacity in innovation. The thread that ties us together and the flame that fuels invention is education. We shall combine our efforts to use this power for our mutual benefit and the advancement of humanity.

2. An agreement between the RBI and CBUAE was inked. In Abu Dhabi, the Reserve Bank of India (RBI) and the Central Bank of the United Arab Emirates (CBUAE) signed two agreements that would provide the groundwork for cross-border transactions in local currencies as well as the integration of payment and messaging systems. The Reserve Bank was told that the two governors exchanged agreements while PM Modi and President Zayed Al Nahyan were present. The memorandum of understanding (MoUs), according to a report by PTI, are intended to “establish a framework to promote the use of local currencies, namely the Indian rupee (INR) and the UAE dirham (AED) for cross-border transactions” and “cooperation for interlinking their payment and messaging systems.”

3. Supporting local currencies for cross-border transactions – After their meeting, PM Modi noted that since the two nations signed the Comprehensive Economic Partnership Agreement in 2022, trade between India and the United Arab Emirates has increased by 20%. Now, with trade settlement in local currencies, the two nations will demonstrate stronger economic cooperation and trust.

4. PM Modi backs UAE’s COP28 president – Modi congratulated the UAE on being chosen as the COP28 host nation in 2023 and pledged his full support to the UAE’s upcoming chairmanship of the climate conference. For inviting him to the COP-28, the prime minister congratulated Sheikh Mohamed. According to reports, PM Modi stated, “I appreciate your offer and always look forward to the opportunity to visit here. I’ve made the decision to go to the UAE for the COP-28 Summit. The two presidents urged the international community to move quickly to fulfill nationally defined commitments, show solidarity, and support in order to protect the long-term aims of the Paris Agreement in their joint statement.

5. Talks between President Zayed Al Nahyan and Prime Minister Modi – The Comprehensive Economic Partnership Agreement (CEPA), which was negotiated during the COVID-19 epidemic and resulted in a 20% increase in trade, provided the economies of the two nations additional impetus. Currently, India and the UAE are cooperating in a number of areas, including commerce, investments, energy, food security, science and technology, education, fintech, defense, and strong interpersonal relationships. On Twitter, PM Modi said, “You have made a big contribution to the manner in which relations between our countries have expanded,” further expressing that Indians see the president of the UAE as a “true friend”. In India, you are regarded as a loyal friend by everyone.