India and the UAE on Saturday agreed to start trade settlement in their currencies and link their fast payment systems to make international financial interactions simpler and open a campus of the Indian Institute of Technology-Delhi in the Gulf nation during Prime Minister Narendra Modi’s day-long visit here.
Modi held wide-ranging discussions with UAE President Sheikh Mohamed bin Zayed Al Nahyan during which the two leaders lauded the economic partnership of the two nations and hoped to achieve the target of $100 billion in trade before the G-20 meeting in Delhi in September.
The warmth of the bilateral ties was on full display as the UAE President welcomed Modi with a warm embrace at Qasr-al-Watan, the presidential palace.
“The manner in which ties between our countries have expanded, you have made a big contribution to that. Every person in India views you as a true friend,” Modi told the UAE President.
After the delegation-level talks, the two sides exchanged three Memoranda of Understanding for the establishment of a framework to promote the use of local currencies for cross-border transactions; for the bilateral cooperation on interlinking their payment and messaging systems; and for planning to establish IIT Delhi campus in Abu Dhabi.
“The MoU on establishing a framework for the use of local currencies for transactions between India and the UAE aims to put in place a Local Currency Settlement System (LCSS) to promote the use of INR and AED bilaterally,” an official statement said.
Under the MoU on 'Payments and Messaging Systems', the central banks of the two countries agreed to cooperate on linking the Unified Payments Interface (UPI) of India with the Instant Payment Platform (IPP) of the UAE.
The two sides also agreed to cooperate on linking the respective Card Switches (RuPay switch and UAESWITCH) and exploring the linking of payments messaging systems — the Structured Financial Messaging System (SFMS) of India with the messaging system in the UAE.
India's Ministry of Education and Abu Dhabi's Education and Knowledge Department signed an MoU for setting up an IIT Delhi campus in the Gulf country.
In a joint statement on climate change, the two leaders underscored the urgent need for developed countries to fulfil the $100 billion delivery plan to achieve the goals of the Paris Agreement.
“For the first time, we have achieved $85 billion in trade and soon we will achieve the target of $100 billion. If we decide, we can cross this milestone before the G20,” Modi said.
The Prime Minister also noted that preparations for COP-28 to be held in the UAE are going on under the UAE President's leadership.
A joint statement said the leaders resolved to further enhance bilateral partnership in the energy field, both in oil, gas, and renewable energy. “Both sides will take forward their cooperation in green hydrogen, solar energy and grid connectivity. Both sides also agreed to increase investment across the energy spectrum, including in India's Strategic Petroleum Reserve Programme,” it said.
The leaders reiterated their resolve to promote the reliability and resilience of food supply chains and expand food and agriculture trade, including through food corridor projects in India, it said.
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