UAE India Trade discussing settling non-oil trade in Rupees
The United Arab Emirates (UAE) and India are in talks to settle non-oil trade in Indian rupees. The discussions were held during a meeting between India’s Commerce and Industry Minister and the UAE’s Minister of Economy.
The two countries also discussed increasing their bilateral trade and investment ties, as well as cooperation in the energy sector. The UAE is India’s third-largest trade partner and one of its major sources of oil.
Why this News is important
The news that India and the UAE are discussing settling non-oil trade in rupees is significant for several reasons.
Firstly, it reflects the growing economic ties between the two countries. The UAE has become an important trade and investment partner for India, with bilateral trade between the two countries reaching $59 billion in 2020-21. By settling non-oil trade in rupees, India can reduce its dependence on the US dollar and strengthen its economic relationship with the UAE.
Secondly, the move could help India to reduce its current account deficit. India imports a significant amount of oil from the UAE, and settling non-oil trade in rupees could help to offset some of the outflows of foreign currency.
Thirdly, the move could have wider implications for India’s trade relationships with other countries. If India is successful in settling non-oil trade in rupees with the UAE, it could encourage other countries to follow suit. This would help to reduce India’s dependence on the US dollar and strengthen its economic ties with other countries.
Historical context
India and the UAE have a long-standing relationship, with ties dating back to the 1950s. Over the years, the two countries have strengthened their trade and investment ties, with the UAE becoming India’s third-largest trade partner.
In recent years, the UAE has emerged as a major source of oil for India. In 2020-21, India imported 73.3 million tonnes of crude oil from the UAE, making it the country’s second-largest supplier after Iraq.
Key Takeaways from “UAE and India discussing settling non-oil Trade in Rupees”
| Serial No. | Key Takeaways |
|---|---|
| 1. | The UAE and India are in talks to settle non-oil trade in Indian rupees. |
| 2. | The move could help India to reduce its dependence on the US dollar and strengthen its economic relationship with the UAE. |
| 3. | India and the UAE have a long-standing relationship, with ties dating back to the 1950s. |
| 4. | The UAE is India’s third-largest trade partner and one of its major sources of oil. |
| 5. | Settling non-oil trade in rupees could help India to reduce its current account deficit. |
Conclusion
In conclusion, the news that India and the UAE are discussing settling non-oil trade in rupees is an important development that could have significant implications for India’s economy and its trade relationships with other countries. By reducing its dependence on the US dollar and strengthening its economic ties with the UAE, India could enhance its position as a major player in the global economy.
Important FAQs for Students from this News
Q. What is the current bilateral trade between India and UAE?
A. The bilateral trade between India and UAE was $59 billion in 2020-21.
Q. What is the significance of settling non-oil trade in rupees?
A. Settling non-oil trade in rupees can help India reduce its dependence on the US dollar and strengthen its economic relationship with the UAE.
Q. What is the historical context of India-UAE trade relations?
A. India and the UAE have a long-standing relationship, with ties dating back to the 1950s. In recent years, the UAE has emerged as a major source of oil for India.
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