India settles crude oil bill with UAE in INR

August 15, 2023 (MLN): India and the United Arab Emirates have initiated a paradigm shift in their bilateral trade dynamics by instituting transactions denominated in their respective domestic currencies.

Notably, India's leading petroleum refiner, Indian Oil Corp, recently concluded a transaction wherein it conducted payment in rupees for the procurement of one million barrels of oil from the Middle Eastern nation.

This pivotal move underscores a pivotal shift in trade modalities and was executed through a payment to the Abu Dhabi National Oil Company (ADNOC), as confirmed by an official statement from the Indian embassy in the UAE, as reported by CNBC.

This reflects India's endeavor to leverage its trade landscape by reducing reliance on the dollar and consequently streamlining transactional intricacies.

Of particular significance is the agreement inked in July between India and the UAE, which sanctioned trade settlements to be conducted in rupees rather than dollars, it said.

This landmark accord substantiates India's strategic approach to optimizing trade processes by mitigating the need for cumbersome dollar conversions.

A crucial aspect of this evolving economic relationship is the introduction of a real-time payment linkage. This innovative mechanism, established during Indian Prime Minister Narendra Modi's visit to the UAE, aims to facilitate seamless cross-border fund transfers, fostering heightened ease and expediency, it added.

Delving into the statistical dimension, bilateral trade volumes between India and the UAE for the fiscal year 2022-23 amounted to a substantial $84.5 billion.

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