Politics & International Studies

UPI in UAE: The Changing Face of Cross-Border Payments

UPI in UAE: The Changing Face of Cross-Border Payments

UAE, by its location and its stature in the region, forms a key pillar of India’s West Asia policy.

Authors

Abhinav Mehrotra, Assistant Professor, Jindal Global Law School, O.P. Jindal Global University, Sonipat, Haryana, India.

Biswanath Gupta, Associate Professor, Jindal Global Law School, O.P. Jindal Global University, Sonipat, Haryana, India.

Summary

Prime Minister Narendra Modi in his recent visit to the UAE announced the extension of the service of the UPI payment system in UAE which is a significant development not only between India and the UAE, but in the West Asian region as a whole. India’s relations with the West Asian region could not realise the true potential immediately after independence, owing mainly to the countries of the region being bound by their obligatory Muslim solidarity with Pakistan. This, however, has changed dramatically over the past two decades, especially after the 9/11 incident and the global war on terror.

India’s West Asia policy is rooted in four important pillars that include the people, energy security, trade and security. It was in 2005 that the then Prime Minister Manmohan Singh formulated the ‘Look West’ policy and then in 2014, PM Modi announced the need for ‘Link West’ along with the ‘Look East’ Policy.

Within the region, it is UAE which has slowly emerged as India’s key partner and a trusted ally. UAE, by its location and its stature in the region, forms a key pillar of India’s West Asia policy. UAE is an integral part of all-important regional forums including the GCC, Arab League etc. It is also part of the I2U2 or the West Asia Quad comprising India, Israel, the US and the UAE.

India’s bilateral relations with the UAE rest on three important pillars including trade and investments, energy and the Indian community in UAE. The landmark agreement CEPA (Comprehensive Economic Partnership) signed on February 18, 2022, laid the foundation for an exponential increase in trade and economic partnership and is an example of a special relationship between the two nations.

Published in: News18.com

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