India has just made its first crude oil payment to United Arab Emirates in Indian rupees, officially dropping the US dollar, per Reuters.

Indian Oil Corp has completed a payment transaction with Abu Dhabi National Oil Company (ADNOC), as confirmed by a statement from the Indian embassy in the United Arab Emirates.

This financial interaction follows a prior transaction involving the sale of 25 kg gold from a UAE-based gold exporter to an Indian buyer, amounting to approximately 128.4 million rupees ($1.54 million).

In a significant move, India and the UAE entered into an agreement in July, permitting trade settlements to occur in rupees instead of dollars. This step aims to enhance India's endeavors in cost reduction by eliminating the need for currency conversion.

During a visit by the Indian Prime Minister, Narendra Modi, to the UAE, both nations also reached a consensus to establish a real-time payment link, streamlining cross-border money transfers.

The bilateral trade volume between India and the UAE for the fiscal year 2022/23 stood at $84.5 billion.