Trade between India and the United Arab Emirates (UAE) surged 14.76% year-on-year in 2023-24, reaching $83.64 billion, according to the annual report of the UAE India CEPA Council.
This marks the first full financial year since the Comprehensive Economic Partnership Agreement (CEPA) came into effect on May 1, 2022.
CEPA has significantly reduced trade barriers, facilitating faster and more efficient trade growth.
As a result, India’s exports to the UAE rose by 27.03%, while the UAE’s exports to India increased by 7.09% compared to the previous financial year.
Deepening Economic Ties
Trade between India and the UAE has grown significantly over the decades, from just $180 million annually in the 1970s to becoming a vital economic partnership.
The UAE is now India’s third-largest trading partner after the United States and China.
Additionally, it has emerged as India’s second-largest export destination, further strengthening economic ties between the two nations.
Focus On Food Security & Investment
Food security has become a major focus of bilateral cooperation. The UAE has committed over $2 billion to invest in integrated food parks across India.
Another key initiative, the $7 billion UAE-India Food Security Corridor, aims to leverage advanced agricultural technology to enhance regional and global food supply chains.
Beyond food security, India’s non-oil trade with the UAE also saw substantial growth, increasing by 20.1% from $49.73 billion in 2022-23 to $59.72 billion in 2023-24.
This growth underscores the diversification of trade beyond traditional oil and gas sectors.
Boost In Investments
Indian companies invested approximately $1.16 billion in the UAE during 2023-24, targeting a wide range of industries, including technology, logistics, and services.
On the other hand, the UAE emerged as India’s fourth-largest foreign investor, committing $3.35 billion to high-potential sectors across the country.
These investments highlight the growing confidence in economic collaboration between the two nations.
Strengthening Bilateral Cooperation
The UAE India CEPA Council, launched in 2024, aims to further strengthen trade and investment ties.
Supported by both governments, the council will focus on key areas such as startups, women’s entrepreneurship, micro, small, and medium enterprises (MSMEs), and the services sector.
The steady growth in trade and investment underscores the effectiveness of CEPA in deepening economic engagement.
With continued collaboration, both nations are poised for even greater economic integration, benefiting businesses and consumers alike.
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