India-UAE trade in rupees, dirhams enters double digits: Piyush Goyal

Mumbai: Trade settled directly in local currencies between India and the UAE has now surpassed double digits, Commerce and Industry Minister Piyush Goyal announced on Monday. Goyal added that bilateral trade is set to rebound to pre-war levels within the coming months. Trade ties between the two nations are close to pre-war levels and are poised to exceed them, Goyal said after a meeting of the India-UAE High Level Joint Task Force on Investments held in Mumbai.

The shift towards rupee-dirham settlements has occurred as the two countries strive to maintain trade amidst geopolitical disruptions and potential threats to critical shipping routes, Goyal explained. India and the UAE are working towards restoring trade to pre-war levels and beyond, he noted. Trade between the two nations is thriving, with all transactions conducted solely in rupees and dirhams, the Commerce Minister said.

Under the local-currency settlement mechanism, Indian exporters can receive payments in rupees, while their counterparts in the UAE can collect payments in dirhams. The currencies are periodically converted into dollars if necessary. The adoption of this mechanism has been on the rise as businesses become more aware of its advantages, Goyal stated.

Now, traders and investors have a comprehensive understanding of the benefits of the mechanism, leading to its widespread implementation. Goyal highlighted that the broader geopolitical landscape has impacted trade, with the Strait of Hormuz, a crucial route for India's energy and merchandise flows, currently facing heightened risks. Despite these challenges, India's merchandise exports surged by more than 15% during the first half of the financial year, ending on September 21, Goyal reported.

New Delhi: Commerce and Industry Minister Piyush Goyal is scheduled to visit the United States this week to attend the G20 trade ministers' meeting and engage with US Trade Representative Jamie L. Raskin Greer on the proposed bilateral trade agreement. The bilateral meeting will be part of ongoing efforts to finalize a balanced and mutually beneficial India-US Bilateral Trade Agreement (BTA) and a potential interim deal in line with the joint statement signed on February 7, 2026, the Commerce and Industry Ministry announced. Goyal's visit to the US will take place from September 29 to October 5.