India and the UAE Bilateral trade is projected to exceed the $100 billion target ahead of the 2030 deadline, driven by a significant year-on-year increase of 12.7%, according to a report released on Tuesday.
As India’s third-largest trading partner and its second-largest export destination for the fiscal year 2022-23, trade between the two nations reached $85 billion last year, with expectations of surpassing the 2030 milestone well before schedule.
The recent visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, to India has further strengthened economic ties. During this visit, five memoranda of understanding (MoUs) were signed following discussions between Prime Minister Narendra Modi and the Crown Prince.
The India-UAE trade relationship is evolving, thanks to structural reforms such as the Comprehensive Economic Partnership Agreement (CEPA) established in 2022, which has removed long-standing trade barriers.
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Nilaya Varma, CEO and Co-founder of Primus Partners, noted that the growth in trade is not only bolstering traditional sectors like gems and jewellery and information technology but is also opening avenues in emerging industries, including green energy and food security.
The partnership also paves the way for collaborative projects like the India-Middle East-Europe Economic Corridor (IMEEC) and the India-Israel-UAE-US (I2U2) coalition.
Future initiatives aimed at enhancing the economic relationship include a master dashboard for critical infrastructure projects, a bilateral e-commerce marketplace leveraging India’s Open Network for Digital Commerce (ONDC) model, and an online repository for investment opportunities in strategic sectors.
Nader Haffar, Director of Primus Partners UAE, emphasized that the bilateral relationship has transformed into a multifaceted partnership, reshaping regional and global trade dynamics. “This synergy between two of the world’s fastest-growing economies is creating new opportunities, fostering innovation, and building a foundation for long-term prosperity that could serve as a global model for emerging market partnerships,” Haffar added.
Gems and jewellery remain a cornerstone of trade, with the CEPA facilitating increased activity in this sector. Additionally, India’s agricultural exports—including cereals, sugar, fruits, vegetables, and tea—play a crucial role in addressing the UAE’s food security needs.
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