India and UAE Strengthen Economic Cooperation through Currency Integration and Payment System Collaboration

During Prime Minister Narendra Modi’s visit to the UAE, India and the UAE took significant strides to strengthen their economic partnership. One of the key agreements was the establishment of a Local Currency Settlement System (LCSS), allowing bilateral transactions in Indian Rupees (INR) and Emirati Dirhams (AED). Another crucial development involved the cooperation between the central banks of both countries to integrate their respective fast payment systems, namely the Unified Payments Interface (UPI) and the Instant Payment Platform (IPP). This integration aims to simplify financial transactions between India and the UAE. The leaders expressed their satisfaction with the expanding economic ties and set an ambitious target of USD 100 billion in bilateral trade before the G-20 meeting in Delhi. The warmth of their relationship and the significance of their strong bilateral ties were emphasized, reflecting the commitment to furthering mutual cooperation.