India and the United Arab Emirates are looking to identify and incorporate commodities to diversify trade between the two countries, UAE ambassador to India said 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.
Currently, the local currency trade has begun with gold and oil.
The framework outlined in the MoUs signed by CBUAE and Reserve Bank of India (RBI) seeks to promote the use of the national currencies in commercial transactions, which would contribute to the development of the foreign exchange market, facilitate bilateral trade, encourage direct investment, and support economic growth and financial stability.
The diversification of traded commodities can broaden the scope of economic cooperation and make local currency transactions more versatile. Discussions are ongoing to identify and incorporate commodities of mutual interest and benefit both nations.
