India-UAE trade settled in local currencies reaches double digits, Piyush Goyal says
What happened
The share of India-UAE bilateral trade settled in rupees and dirhams has reached double digits, according to Indian Commerce Minister Piyush Goyal. Goyal said businesses are increasingly adopting local currency mechanisms to navigate geopolitical disruptions as total bilateral trade flows near pre-war levels.
Why it matters
Settling trade in rupees and dirhams allows companies to reduce cross-border payment friction and manage foreign exchange risks directly during geopolitical crises. This operational shift helps businesses sustain trade flows without relying solely on traditional third-currency clearing systems.
Bigger picture
The growth of local currency settlements reflects a broader effort by bilateral trade corridors to build structural resilience against global instability and foreign exchange shocks.
Watch next
Upcoming trade releases to monitor whether total bilateral volume fully restores to pre-war levels and local currency adoption continues to expand.