Modi signs India-UAE trade pact, MoU to establish IIT-Delhi campus
What's the story
Prime Minister Narendra Modi on Saturday concluded his visit to the United Arab Emirates (UAE), where he met its ruler and UAE President Sheikh Mohamed bin Zayed Al Nahyan and signed crucial agreements.
The two leaders announced a slew of new initiatives, including trade settlement in local currencies and the establishment of an Indian Institute of Technology, Delhi (IIT-Delhi), campus in the Gulf country.
Context
Why does this story matter?
PM Modi's visit to the UAE has been billed as crucial for both countries.
According to the Ministry of External Affairs (MEA), India and the UAE are strategic partners, and their relationship is strengthening.
Both nations reportedly regarded the visit as an opportunity to identify opportunities for new initiatives in sectors like energy, education, healthcare, food security, fintech, defense, and culture.
Details
India, UAE sign pact to trade in local currencies
PM Modi reportedly signed a pact with Al Nahyan, agreeing to promote the use of local currencies—Indian Rupee (INR) and UAE Dirham (AED)—for cross-border transactions.
They also agreed to interlink the countries' payment gateways—India's Unified Payments Interface (UPI) and the UAE's Instant Payment Platform (IPP).
"It paves the way for enhanced economic collaboration and will make international financial interactions simpler," PM Modi said.
Trade pact
Trade pact aimed at formation of joint forex
The trade agreement is said to be aimed at establishing a Local Currency Settlement System (LCSS) to boost bilateral usage of INR and AED through current account transactions and allowed capital account transactions.
The LCSS would allow exporters and importers to invoice and pay in their respective local currencies, allowing the formation of an INR-AED forex market, said the Reserve Bank of India (RBI).
IIT-Delhi
IIT-Delhi's UAE campus to offer masters courses from January
PM Modi and the UAE president's meeting also saw the two leaders signing another agreement for opening a campus of the IIT-Delhi in Abu Dhabi.
It will reportedly offer master's courses from January 2024, followed by bachelor's courses from September next year.
The prime welcomed the decision calling it a "significant stride in our educational internationalization and testament to India's innovation prowess."
Joint statements
India-UAE talks focus on climate change delivery plan
During the bilateral meetings, the two leaders issued two joint statements—one of which was explicitly for cooperation in climate change.
They emphasized the urgent necessity for developed nations to fulfill the $100 billion climate finance delivery plan and the need for collaborative action to accomplish the Paris Agreement goals.
Notably, the UAE will host the 2023 United Nations Climate Change Conference (UNFCCC COP28).
Quote
PM Modi assures support to UAE in COP28
While assuring India's support to COP28, PM Modi tweeted, "Had a very productive meeting with Dr. Sultan Al Jaber, the President-designate of @COP28_UAE. Our discussions focused on ways to further sustainable development. Highlighted India's contribution in this direction, in particular our emphasis on Mission LiFE."
Visit
UAE's ceremonial welcome for PM Modi
PM Modi was greeted with a special gesture in the UAE and was warmly welcomed by Abu Dhabi's crown prince.
He received a ceremonial welcome and was honored with a Guard of Honour on his fifth visit.
"Landed in Abu Dhabi. I look forward to the deliberations with HH Sheikh Mohamed bin Zayed Al Nahyan, which will further deepen India-UAE cooperation," Modi tweeted.
Twitter Post
PM Modi expresses gratitude after arrival in Abu Dhabi
Landed in Abu Dhabi. I look forward to the deliberations with HH Sheikh Mohamed bin Zayed Al Nahyan, which will further deepen India-UAE cooperation. @MohamedBinZayed pic.twitter.com/l3alPoKjXK
— Narendra Modi (@narendramodi) July 15, 2023