Talks on with UAE for trade in rupee, dirham

New Delhi, October 11

India and the UAE on Tuesday discussed tax incentives to Dubai-based deep-pocketed investment funds and carrying out bilateral trade in national currencies.

As a means of encouraging increased investment flows by the UAE sovereign investment entities into India, the UAE has requested tax incentives to some of its sovereign investment entities under the existing UAE-India Tax Treaty, said an official statement on the 10th meeting of the UAE-India High Level Joint Task Force on Investments in Mumbai. It was co-chaired by Commerce Minister Piyush Goyal and senior UAE official Sheikh Hamed bin Zayed Al Nahyan.

Another important area discussed was the creation of a mechanism for carrying out bilateral trade in national currencies. Referring to the ongoing discussions between RBI and Central Bank of the United Arab Emirates on Unified Payment Interface (UPI) as a common digital payments platform, both sides agreed to continue discussions.

The Joint Task Force was established by the UPA Government in 2013 to promote bilateral trade and economic ties. This was the first meeting of the Joint Task Force since the signing of the India-UAE Comprehensive Economic Partnership Agreement in February 2022.

UAE SEEKS INCENTIVES

• The UAE has requested tax incentives to some of its sovereign investment entities under the existing UAE-India Tax Treaty
• The creation of a mechanism for carrying out bilateral trade in national currencies was also discussed