The latest development will be a big boost to import and export bilateral trade.

In a landmark move, the UAE and India on Tuesday inked a currency swap agreement, which means businesses can now can do trade using local currencies of rupee and dirham, instead of dollar.

With nearly $50 billion bilateral trade, the two countries are one of the largest trade partners for each other and have made robust investments bilaterally. The latest development will be a big boost to import and export bilateral trade.

The agreement to this effect was inked during the two-day visit by Indian External Affairs Minister Sushma Swaraj. The minister co-chaired the 12th session of the UAE-India Joint Commission Meeting with Sheikh Abdullah bin Zayed Al Nahyan, Minister of Foreign Affairs and International Cooperation held at ministry's headquarters in Abu Dhabi. Both leaders agreed to boost cooperation in trade, security and defence. The leaders also decided to strengthen their resolve to combat extremism and terrorism in all its forms, regardless of the perpetrators and their intent.

Sheikh Abdullah said the UAE has always shared strong historical ties with India. He noted the bilateral relations are based on mutual respect, trust and aimed at enhancing mutual benefit of the people.

Swaraj congratulated the leadership, government and the people of the UAE on the occasion of the celebration of the National Day.

The ministers also oversaw memorandums of understandings being signed.

First was for development of cooperation in Africa between both the ministries. Later, the currency swap agreement was inked between the Central Bank on UAE and the Reserve Bank in India. Mohammed Ali bin Zayed Al Falasi, Deputy Governor of the Central Bank of UAE and Indian Ambassador to the UAE, Navdeep Singh Suri signed the agreement.

Separately, Mohamed Sharaf, Assistant Minister for Economic and Commercial Affairs at the UAE Ministry of Foreign Affairs and International Cooperation and TS Tirumurti, Secretary for Economic Affairs at the Indian Ministry of External Affairs, led the Senior Officials Meeting held discussions under eight subcommittees - bilateral matters, consular field, space, education, agriculture and livestock and development cooperation, civil aviation, and economic and trade, investments, banking and finance cooperation.

ashwani@khaleejtimes.com