India and the United Arab Emirates (UAE) have signed an agreement to settle bilateral trade in their local currencies, the Indian rupee and the UAE dirham. This means that India will be able to buy oil from the UAE using Indian rupees, instead of dollars.
The agreement is a significant step for India, as it will help to reduce the country's reliance on the dollar. The dollar is the world's reserve currency, and it is often used to settle international trade. However, the value of the dollar has been volatile in recent years, which has made it difficult for India to plan its imports and exports.
The agreement with the UAE will help to insulate India from fluctuations in the dollar, and it will also help to boost bilateral trade between the two countries. The UAE is India's third-largest supplier of oil, and the agreement is expected to increase the volume of oil trade between the two countries.
The agreement is also a sign of the growing economic ties between India and the UAE. The UAE is a major financial hub in the Middle East, and it has been investing heavily in India in recent years. The agreement on oil trade is expected to further strengthen the economic ties between the two countries.
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