Archive · 28 Sep 2026
India and UAE Advance Local-Currency Trade Toward $200 Billion Target
India and the United Arab Emirates want to make it easier to trade and invest with each other.
They agreed to work on using rupees and dirhams for some payments instead of another currency.
They also want their digital payment and financial messaging systems to work together.
Central-bank digital currencies were part of the discussions too.
The countries hope these changes will make payments faster, cheaper and more dependable.
They want to grow their trade from about $101 billion to $200 billion by 2032.
They are also discussing investments in energy, ports, ships, technology, space, food and startups.
India and the UAE explored better air links and an aviation and logistics hub in Dholera, Gujarat.
They also discussed storing more energy in India and creating links between their payment systems.
India and the United Arab Emirates agreed to advance local-currency trade settlement, payment and messaging integration, and central-bank digital-currency initiatives.
The agreement followed the 14th India-UAE High-Level Joint Task Force on Investments meeting in Mumbai, co-chaired by Piyush Goyal and Sheikh Hamed bin Zayed Al Nahyan.
The countries aim to increase bilateral trade from $101.25 billion in 2025-26 to $200 billion by 2032.
Potential investment cooperation includes energy, logistics, infrastructure, technology, artificial intelligence, space, food security, shipping and startups.
The two sides also discussed expanded air connectivity, a Dholera aviation and logistics hub, energy-security projects and payment-system links.
- Who
- India and the United Arab Emirates, represented at the meeting by Piyush Goyal and Sheikh Hamed bin Zayed Al Nahyan.
- What
- The countries agreed to support local-currency settlement, integrated payment and messaging systems, and central-bank digital-currency initiatives.
- When
- The agreement was reported on 28 September after the 14th task-force meeting held on Monday.
- Where
- The meeting took place in Mumbai, India; a proposed aviation and logistics hub is being explored in Dholera, Gujarat.
- Why
- The initiatives are intended to make bilateral trade and investment more efficient, accessible and resilient, while supporting a $200 billion trade target by 2032.
- Task-force meeting
- 14th meeting of the India-UAE High-Level Joint Task Force on Investments
- Trade target
- India and the UAE aim to reach $200 billion in bilateral trade by 2032
- Current trade
- Bilateral trade reached $101.25 billion in 2025-26
- Non-oil trade
- Non-oil trade totaled $76.2 billion in the previous year
- Payment initiatives
- Local-currency settlement, payment and messaging integration, and central-bank digital currencies
- Investment interests
- Energy, industry, logistics, infrastructure, technology, artificial intelligence, space, food security, agriculture and startups
- Energy cooperation
- The countries are studying expanded strategic petroleum reserves, UAE energy supplies and possible subsea gas pipelines
- Economic agreements
- The Comprehensive Economic Partnership Agreement took effect in May 2022, and a bilateral investment treaty was implemented in August 2024
