India and the UAE have harnessed complementarities in their strengths and built strong partnerships in all arenas, especially in economy and people-to-people relations, Sunjay Sudhir, the Indian Ambassador to the UAE, told the Emirates News Agency (WAM) on Thursday.

Speaking to WAM on the occasion of Indian Independence Day, he stressed that India-UAE bilateral relations have undergone rapid and positive transformation in recent years under the vision and guidance of the leadership on both sides.

Closer than ever

India and the UAE are closer than ever before, he emphasised. “Our financial systems are well on their way to close integration with the launch of the United Payments Interface (UPI) in the UAE and the Rupee-Dirham Local Currency Trade Settlement Mechanism. India’s Rupay Card stack now forms the backbone of the UAE’s very own domestic card scheme called ‘Jaywan’.”

The envoy was referring to the implementation of bilateral agreement on interlinking of the instant payment platforms of India’s UPI and the UAE’s AANI; and agreement on inter-linking RuPay, India’s indigenous card payment network, and the UAE’s Jaywan card network.

The UAE’s unrivalled capabilities in global logistics and supply chains are poised for further enhancement with the upcoming “Bharat Mart” - a hub for Indian exports to the world - in Dubai, he noted.

“Moreover, the benefits of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) are already manifesting in the form of surging bilateral trade. Remarkably, UAE is the only country with which India has an active CEPA and a Bilateral Investment Treaty (BIT) - a special relationship indeed!”

Economic prowess

On the Independence Day, India is celebrating its economic prowess as well, the ambassador said.

India is today the 5th largest economy in the world and is on track to become the 4th largest by the end of 2025, he pointed out.

For more than a decade now, India has been among the top three fastest growing major economies. The Indian startup ecosystem ranks third globally in terms of unicorn count, and is collectively valued at close to US$350 billion (Dhs1.29 trillion), the envoy said.

Indian community in UAE

The vibrant Indian community in the UAE is widely recognised as one of the most critical socio-economic pillars of strength of the UAE as well as of India-UAE relations, he said.

“There is clearly a reason globally the largest number of Indian nationals, over 3.5 million, have made the UAE their home. This is the largest in the world and about 45 percent of the Indian nationals in the whole of GCC.”

The Indian community members have not only embraced the values and traditions of India, but have also become ambassadors of goodwill, fostering stronger ties between India and the UAE, the ambassador explained.

“Their contribution to the economy and development of the UAE is widely recognised, not only by the leaders and government of the UAE, but also by the Emiratis in general. I am sure, they will continue to build bridges, foster understanding, and contribute to the growth and prosperity of both India and the UAE,” Sudhir concluded.

Meanwhile, Americans stepped up their spending at retailers last month by the most in a year and a half, easing concerns that the economy was slowing under the pressure of higher prices and elevated prices, the Associated Press reported.

The Commerce Department reported on Thursday that U.S. retail sales jumped 1 percent from June to July after having declined slightly the previous month. Auto dealers, electronics and appliance stores and grocery stores all reported strong gains.

Adjusted for inflation, sales rose about 0.8 percent. And excluding gas station sales, which do not reflect Americans’ appetite to spend, retail sales also rose 1 percent.

Rising wages

Consumers have been pummelled since the pandemic by high prices and elevated interest rates. Yet at the same time, average wages have also been rising, providing many households with the means to keep spending.

Inflation-adjusted wages have increased slightly from a year ago. Upper-income households have also seen their wealth increase, with stock prices and home values having jumped in the past three years. Increases in wealth can encourage more spending.

Financial markets had plunged earlier this month on fears surrounding the economy after the government reported that hiring was much weaker than expected in July and the unemployment rate rose for a fourth straight month.

WAM