India-UAE Bilateral Trade Sees Significant Growth; Bolstered By Free Trade Agreement

Bilateral trade between India and the UAE has surged by 21.35% to reach $80.51 billion during the April-January period of this fiscal year, according to data from the Ministry of Commerce. This growth highlights the strengthening economic ties between the two nations.

India’s exports to the UAE increased by 6.82%, totaling $30 billion during the first 10 months of the fiscal year. On the other hand, imports from the UAE saw a substantial rise of 35.58%, reaching $50.51 billion.

This upward trajectory in both imports and exports reflects the expanding trade relationship between the two countries.

Free Trade Agreement Fuels Growth

The Ministry of Commerce attributes the healthy trade growth to the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, which came into effect in May 2022.

The agreement has played a pivotal role in boosting bilateral trade and diversifying trade flows, with non-oil trade alone reaching $57.8 billion in 2023-24, accounting for over half of the total trade.

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The Ministry highlighted that CEPA has been successful in diversifying the trade basket between India and the UAE. In its three years since signing, nearly 240,000 certificates of origin have been issued, resulting in exports worth $19.87 billion to the UAE.

The growth in non-oil trade aligns with the target of reaching $100 billion in non-oil bilateral trade by 2030.

Key Sectors Driving Trade Growth

At the sectoral level, refined crude oil products and gems and jewellery have continued to dominate trade. Additionally, electrical machinery and equipment, as well as high-tech products like boilers, generators, and reactors, have emerged as significant contributors to the trade surge.

Among the most notable product-level achievements, smartphones have become a major export item, with shipments valued at $2.57 billion to the UAE during 2023-24.

This shift underscores the growing demand for Indian-made electronic products in the UAE market.

The strong performance of India-UAE trade, supported by the CEPA, sets a solid foundation for continued economic collaboration and trade expansion between the two nations.