Department of Industrial Policy and Promotion (DIPP) under Union Ministry of Commerce and Industry is upbeat over the signing of a currency swap deal between India and the UAE. "The deal will further give a boost to bilateral trade between two countries," said DIPP officials.
"The idea, first mooted by Union Minister of Commerce and Industry Minister Suresh Prabhu, was discussed at length during the sixth meeting of UAE-India high-level Joint Task Force on Investments held in Mumbai on October 15," they said on Wednesday.
"The Minister was in constant touch with his UAE counterpart and also with other stakeholders in order to pursue the matter. Our consistent efforts paid off in culminating in the currency swap agreement that was signed between India and UAE," DIPP officials added.
Elaborating further, the officials said the impact of the measures taken by the Government of India has resulted in record foreign direct investment (FDI) inflows of over USD 61.9 billion in 2018 and an impressive jump of 53 places in the World Bank's Ease of Doing Business rankings in the last two years.
"We have also established a special UAE desk in Invest India, the national investment promotion agency of India, in order to facilitate investments and resolve issues relating to UAE investments in India," they said.
"We have also discussed a number of potential investment projects in different sectors in India like highways, infrastructure corridor projects, Sagar Mala projects, and new green-field airports, agro-exports potential, and food processing," the officials further said.
It is worth mentioning that during External Affairs Minister Sushma Swaraj's visit to the Gulf nation earlier this week, the agreement on currency swap between the Reserve Bank of India and the Central Bank of the UAE was exchanged and signed.
The currency swap deal allows the two countries trading in their own currency and payments to import and export trade at pre-determined exchange rate without bringing in a third benchmark currency like US dollar.
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