To establish an “India Fast Track Mechanism in the UAE” to address challenges faced by Indian firms there.
At the Tuesday meeting of the UAE-India High-Level Joint Task Force on Investments in Mumbai, India and the UAE decided to keep having a conversation about developing a payment system for conducting bilateral trade in local currencies rather than relying on hard currencies like the US dollar or the euro.
On Tuesday, October 11, India and the UAE spoke about tax breaks for wealthy investment funds domiciled in Dubai and conducting bilateral trade in local currencies.
An official statement on the 10th meeting of the UAE-India High-Level Joint Task Force on Investments in Mumbai stated that the UAE has requested tax incentives for some of its sovereign investment entities under the existing UAE-India Tax Treaty in order to encourage increased investment flows by the UAE sovereign investment entities into India. Piyush Goyal, the minister of commerce, and Sheikh Hamed bin Zayed Al Nahyan, a top UAE official, co-chaired the meeting.
The development of a method for conducting bilateral trade in national currencies was another significant topic covered. Both parties agreed to continue talking about the Unified Payment Interface (UPI) as a single digital payment platform during the ongoing conversations between the RBI and the Central Bank of the United Arab Emirates.
The UPA government established the Joint Task Force in 2013 to enhance cross-border commerce and economic linkages. This was the Joint Task Force’s first gathering since the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates was signed in February 2022.
Under the current UAE-India Tax Treaty, the UAE has asked for tax benefits for some of its sovereign investment firms. A system for conducting bilateral commerce in national currencies was also brought up.
