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NEW DELHI: India and the UAE are looking to identify and incorporate commodities to diversify trade between the two countries, said its ambassador to India in an interview to the Mint newspaper.
In an email interview, Ambassador Abdulnasser Jamal Alshaali also said that India, Europe, and the Middle East MoU for the India-Middle EastEurope Economic Corridor (IMEC) could potentially reduce shipping costs and facilitate efficient trade in goods and services.
The diversification of traded commodities can broaden the scope of economic cooperation and make local currency transactions even more versatile, he added.
The increasing trend of local currency trade between India and the UAE has the potential to usher in a new era of trade ties between the two nations, he told the Mint.
This development signifies a commitment to strengthening economic cooperation and reducing reliance on foreign currencies, which can streamline the trade processes and reduce transaction costs, the newspaper quoted him.
Also, the UAE-India Comprehensive Economic Partnership Agreement (CEPA) came into force on May 1, 2022, that eliminated or reduced tariffs on more than 80 per cent of product lines, created new platforms for SME collaboration and promoted mutual investment flows, particularly into priority sectors, the Ambassador stated.
The CEPA has contributed to strengthening economic ties between the countries who are committed to expanding their partnerships across various sectors, focusing on sustainable growth, he said.
A significant initiative
The agreed UAE-India CEPA Council (UICC) will function as a B2B collaboration mechanism, with a focus on MSMEs and start-ups, for building greater economic linkages and optimising CEPA benefits. India, Europe, and the Middle East MoU for the IMEC is a significant initiative that aims to boost connectivity, trade, and sustainability among participating countries, he told the Mint.
The UAE’s involvement in IMEC is expected to be multifaceted, leveraging its strategic location, trade expertise, and commitment to environmental conservation to contribute positively to the success of the corridor and strengthen international partnerships.
Incidentally, the UAE announced a $2 billion investment in India ‘food parks’ to tackle food security in South Asia and the Middle East, the UAE, India, the US, and Israel last year, mentioned the newspaper.