MUMBAI : India’s plan to use the rupee for trade transactions with the UAE could unlock major trade opportunities and reduce conversion costs for small businesses, according to Commerce and Industry Minister Shri Piyush Goyal.

“By implementing the Rupee currency in UAE trade, we aim to open vast trade opportunities while addressing the 5-6% costs incurred otherwise in currency conversion, impacting MSMEs significantly,” said Goyal, highlighting the strategic importance of this decision.

This strategy is expected to deepen economic ties between India and the UAE, with a consequential uplift in bilateral trade. Furthermore, the move would introduce greater flexibility for businesses involved in cross-border transactions, thereby streamlining and making the trading process more economical. Goyal also underscored the government’s commitment to boosting international partnerships and trade collaborations, citing recent trade agreements with Australia and the UAE, as well as ongoing discussions regarding Free Trade Agreements (FTAs) with the UK, EU, and Canada.

Goyal’s statement came during the celebration of the 30th anniversary of CareEdge Ratings. The minister lauded the remarkable growth of India’s economy and said a significant part of this growth was due to the thriving export sector. It has played a vital role in contributing to the nation’s GDP, nearly doubling its share from 13.7% in FY04 to 23.5% in FY23, he said.