In a significant move to streamline cross-border transactions, NPCI International Payments Ltd is poised to establish a strategic agreement with Al Etihad Payments. According to a report by PTI, this pivotal pact with NPCI, will be signed in Abu Dhabi, UAE. The agreement primarily revolves around the development of a domestic card scheme in the UAE, drawing inspiration from India’s RuPay debit and credit card framework.
The impending agreement’s signing will be graced by the presence of India’s commerce and industry minister, Piyush Goyal. He is currently leading a business delegation on a visit to Abu Dhabi scheduled from October 5th to October 6th.
During this visit, India and the UAE will engage in discussions that span issues and challenges associated with existing investments in each other’s countries. The commerce ministry issued a statement underscoring the multifaceted nature of these talks. The statement reads, “The meeting will also review the outcomes achieved through the work of the Joint Task Force to date, and the two sides will continue exploring ways to facilitate investment in areas of mutual interest with the potential for economic growth.”
Highlighting the importance of this high-level visit, Piyush Goyal will co-chair the eleventh meeting of the India-UAE High-Level Task Force on Investments (HLTFI). His co-chair for this significant forum is Sheikh Hamed Bin Zayed Al Nahyan, managing director of Abu Dhabi Investment Authority.
Aside from the formal discussions, the Indian commerce minister will hold bilateral meetings with key figures, including Mubadala’s CEO and MD Khaldoon Al Mubarak. Additionally, he will engage with members of the UAE-India Business Council, prominent business leaders, and major food importers from the Gulf Cooperation Council (GCC) and Egypt.
A notable achievement in the India-UAE economic partnership has been the influx of foreign direct investment (FDI) from the UAE into India. Between April 2000 and June 2023, India received a staggering $16 billion in FDI from the UAE, accounting for 2% of the total FDI during that period. This robust investment flow underscores the growing economic ties between the two nations.
Furthermore, the bilateral trade between India and the UAE has witnessed remarkable growth, surging from $72.9 billion in 2021-22 to $84.9 billion in 2022-23. This substantial increase reflects the expanding avenues of collaboration in trade and commerce.
In a related development, in 2022, the National Payments Corporation Of India (NPCI), which serves as the umbrella organization for UPI services, signed a memorandum of understanding (MoU) with France’s fast and secure online payment system known as Lyra. This international collaboration signifies NPCI’s commitment to fostering global partnerships for the advancement of digital payment systems.