Indian rupee hits record low against dirham; will UAE grocery prices fall?

The Indian rupee's record low against the UAE dirham and the US dollar's mixed bag of fortunes has resulted in a price drop in some goods.

- Waheed Abbas

However, rising production and transportation costs in India often outweigh the currency advantage.The Indian rupee has hit an all time low against the Emirati currency and the US dollar, reaching 24.6 against the dirham and 90.4 against the greenback.

Shuaib Alhammadi, director of community relations, Union Coop, said this is an opportunity to import more from India as the items will be more competitive. “We have already noticed for the last few months a decrease in the price of some items versus last year, like the red onion. The decrease is estimated for some items, reaching currently 10 per cent. The decrease started with fresh items, and will be followed by consumer goods,” said Alhammadi.

India is one of the UAE's largest trading partners, with bilateral non-oil trade reaching $38 billion (Dh139.46 billion) in the first half of 2025. The trade has increased significantly after the two countries signed the Comprehensive Economic Partnership Agreement (CEPA) in May 2022.

The UAE imports a variety of consumer goods from India, including rice, fruits and vegetables, textiles, gems and jewellery among others.