With reference to India-UAE relations, consider the following statements: 1. Reserve Bank of India (RBI) and the Central Bank of the UAE have agreed to establish a framework for enabling the use of their local currencies for cross-border transactions. 2. UAE supports India’s bid for entry in the UNSC. 3. UAE is India’s second-largest trading partner. Which of the statements given above are correct? |ForumIAS

Q. With reference to India-UAE relations, consider the following statements:
1.Reserve Bank of India (RBI) and the Central Bank of the UAE have agreed to establish a framework for enabling the use of their local currencies for cross-border transactions.
2.UAE supports India’s bid for entry in the UNSC.
3.UAE is India’s second-largest trading partner.
Which of the statements given above are correct?

[A] 1 and 2 only

[B] 2 and 3 only

[C] 1 and 3 only

[D] 1, 2 and 3

Answer: A

Notes:

Explanation –

Statements 1 and 2 are correct. The Reserve Bank of India (RBI) and the Central Bank of the UAE signed an agreement in 2023 to enable the use of their local currencies for cross-border transactions. The UAE has expressed its support for India’s bid for a permanent seat in the United Nations Security Council (UNSC).

Statement 3 is incorrect. In 2022-23, the UAE was India’s third-largest trading partner, with bilateral trade totaling around $85 billion.

Source: Forum IAS

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