Is Indian Currency Going Global? India-UAE Trade to be in Indian Rupee
Key Points
- India’s recent strategic moves in trading in Indian Rupees and fostering stronger international ties showcase its growing influence on the global stage.
- To capitalize on this position and enhance the value of its currency, India has issued a statement indicating that it will conduct trade with around 20 to 21 countries in Indian Rupees, moving away from the conventional use of the US dollar.
- The swift and well-prepared nature of this meeting between PM Modi and Sheikh Muhammad Bin Zaid for only one day indicates the level of strategic planning and coordination behind such interactions.
- India’s proactive stance in securing funding on the pretext of environmental initiatives and utilizing it for developmental purposes demonstrates its forward-looking approach.
- Pakistan must take heed of these developments and reassess its foreign policy priorities.
- The world is shifting towards future-oriented strategies, and Pakistan must adapt accordingly to secure its place in the ever-changing geopolitical landscape.
Dr. Qamar Cheema in his recent podcast mentioned that India has been making significant strategic moves on the global stage, particularly in its economic and diplomatic relations with other nations. A recent noteworthy development is the agreement between India and the United Arab Emirates (UAE) to settle trade in Indian Rupees. This decision comes in the wake of India’s growing importance as a major player in the international arena, with bilateral trade between India and UAE currently standing at around $85.5 billion.
Furthermore, India’s position as the third-largest oil importer and consumer makes it an influential player in the global energy market. To capitalize on this position and enhance the value of its currency, India has issued a statement indicating that it will conduct trade with around 20 to 21 countries in Indian Rupees, moving away from the conventional use of the US dollar. This move is seen as a strategic step to boost its own currency while maintaining trade relationships with various countries worldwide.
Dr Qamar was of the view that Prime Minister Narendra Modi’s visit to France and subsequent signing of Seamless Cross-border Agreements and Payments with the UAE fostered greater economic cooperation between the two nations. The Reserve Bank’s announcement about linking India’s Unified Payment Interface with UAE’s instant payment platform is expected to simplify money transfers between the two countries.
The swift and well-prepared nature of this meeting between PM Modi and Sheikh Muhammad Bin Zaid for only one day indicates the level of strategic planning and coordination behind such interactions. It exemplifies how strong nations skillfully strategize their plans to further their interests in the global landscape.
He emphasized that the comprehensive partnership between India and the UAE spans various sectors, with both countries holding significant international positions, such as the UAE’s presidency of Coup 28 and India’s G28 presidency. India’s special invitations to select countries not part of the G20 to attend relevant summits demonstrate India’s diplomatic prowess and ability to engage with nations outside traditional frameworks.
On the other hand, Pakistan’s foreign policy has been criticized for being reactive to internal politics rather than proactive in terms of engaging with other nations. While India secures trade deals and economic partnerships, Pakistan has often been constrained by factors like the Kashmir issue, limiting its ability to attract foreign investments.
Prime Minister Modi’s upcoming visit to South Africa holds historic significance. India’s proactive stance in securing funding on the pretext of environmental initiatives and utilizing it for developmental purposes demonstrates its forward-looking approach.
India’s commitment to multilateral frameworks and its readiness to engage with other nations for mutual benefits, exemplified by its promise to provide renewable energy by 2070, is helping attract funding through green initiatives. Meanwhile, Pakistan’s foreign policy appears stagnant, relying on ideological factors rather than focusing on future-oriented trade and investment opportunities.
India’s strategic partnership with the UAE is likely to influence other nations like Saudi Arabia and Oman to shift their focus towards bolstering ties with India, given its status as a large and well-established country.
Dr Qamar stressed that Pakistan must take heed of these developments and reassess its foreign policy priorities. It should seek opportunities for trade and investment and avoid relying solely on an Islamic identity card for international recognition. Instead, Pakistan should think creatively and adopt a more business-oriented approach to strengthen its position in the global arena.
To achieve this, resolving issues with neighboring countries such as Afghanistan, Iran, China, and India is imperative. Emphasizing diplomacy and economic cooperation can pave the way for enhanced regional stability and economic growth.
India’s recent strategic moves in trading in Indian Rupees and fostering stronger international ties showcase its growing influence on the global stage. As India positions itself as an economic powerhouse and proactive diplomatic player, it’s crucial for Pakistan to reassess its foreign policy approach and prioritize economic opportunities for growth and stability in the region. The world is shifting towards future-oriented strategies, and Pakistan must adapt accordingly to secure its place in the ever-changing geopolitical landscape.
