"This is a very important aspect of India-UAE cooperation."
Prime Minister Narendra Modi on Saturday said that the signing of the pact between the Reserve Bank of India (RBI) and the Central Bank of UAE (CBUAE) to promote the use of local currencies- the Indian Rupee (INR) and the UAE Dirham (AED) for cross-border transactions will pave the way for enhanced economic collaboration and will make international financial interactions simpler.
Describing the two MoUs between Indian and UAE an important aspect of cooperation between the two nations, PM Modi on Saturday said, "This is a very important aspect of India-UAE cooperation. It paves the way for enhanced economic collaboration and will make international financial interactions simpler."
"Our bilateral trade has grown by 20 per cent. For the first time, we have achieved USD 85 billion trade and soon we will achieve the target of USD100 billion. If we decide, we can cross this milestone before the G20," PM Modi said.
Two Memorandum of Understandings (MoUs) were exchanged in the presence of Prime Minister Narendra Modi and UAE President Mohammed bin Zayed al Nahyan in Abu Dhabi.
The agreements aimed at facilitating seamless cross border transactions and payments, and fostering greater economic cooperation between India and United Arab Emirates (UAE).
The MoUs were signed by the Governor of the Reserve Bank of India, Shaktikanta Das and the Governor of the Central Bank of UAE, Khaled Mohamed Balama.
The MoUs were exchanged between the two Governors, in the august presence of the Prime Minister of India, Narendra Modi and Sheikh Mohamed Bin Zayed Al Nahyan, President of the UAE.
"The MoU on establishing a framework for the use of local currencies for transactions between India and UAE, aims to put in place a Local Currency Settlement System (LCSS) to promote the use of INR and AED bilaterally," it said.
They also held a tete-a-tete after which PM Modi said, "I am thankful for your invitation and I always look for the chance to come here. I have decided to attend the COP-28 Summit in the UAE."
"We are taking new initiatives to strengthen our partnership. Today's agreement on trade settlement in the currencies of both countries reflects our strong economic cooperation and trust," PM Modi added.
PM Modi also met COP28 President-designate Sultan Al Jaber and the prior highlighted India's efforts and initiatives to address climate change during their talks.
On his arrival at the Abu Dhabi airport, PM Modi received a ceremonial welcome.
"Deepening India- UAE Comprehensive Strategic Partnership. PM Narendra Modi was warmly welcomed by UAE President and Ruler of Abu Dhabi HH Sheikh Mohamed bin Zayed Al Nahyan at the iconic Qasr Al Watan Presidential Palace. Extensive discussions between the two leaders covering various aspects of bilateral ties lie ahead," tweeted Ministry of External Affairs spokesperson Arindam Bagchi.
Kickstarting the final leg of his two-nation visit on Saturday, Prime Minister Narendra Modi met the Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohammed bin Zayed Al Nahyan, in the United Arab Emirates (UAE).
Upon his arrival in Abu Dhabi, PM Modi was welcomed by Sheikh Khaled Bin Mohamed Bin Zayed, Crown Prince of Abu Dhabi at the airport.
Expressing his gratitude over warm welcome to the Gulf nation, PM Modi took to Twitter to post, "Grateful to Crown Prince HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan for welcoming me at the airport today."
The Indian Ministry of External Affairs in a statement said that as part of an official visit to the UAE, Modi will meet and hold talks with the President, His Highness Sheikh Mohamed bin Zayed Al Nahyan.
Burj Khalifa, the tallest building in the world, displayed the Indian flag Friday night to welcome Prime Minister Modi to the country.
"The India-UAE Comprehensive Strategic Partnership has been steadily strengthening, and the Prime Minister's visit will be an opportunity to identify ways to take this forward in various domains such as energy, education, healthcare, food security, fintech, defence and culture," the MEA said.
"It will also be an opportunity to discuss cooperation on global issues, particularly in the context of the UAE's presidency of COP28 of the UNFCCC and India's G-20 presidency in which UAE is a special invitee," it added.
PM Modi emplaned for UAE after concluding his two-day visit to France.
(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)