The United Arab Emirates (UAE) and India have held discussions focused on expanding bilateral trade and investment in key sectors such as infrastructure, energy, and technology.
The Comprehensive Economic Partnership Agreement (CEPA) between the two countries completed three years of signingin February, marking a significant development. According to the Ministry of Commerce and Industry, since the signing of CEPA, bilateral merchandise trade has nearly doubled from $43.3 billion in Financial Year 2020-21 to $83.7 billion in 2023-24.
During the current Financial Year till January’25, it reached $80.5 billion. CEPA has been successful in realizing its potential for diversification of trade basket as non-oil trade touched $57.8 billion in Financial Year 2023-24, accounting for more than half of the total trade.
This is attuned to the target of taking bilateral non-oil trade to the $100 billion level by 2030. In terms of utilization of CEPA preferential duties, since coming into force, nearly 2,40,000 Certificates of Origin have been issued, against which total export of $19.87 billion have been made to the UAE.
In terms of India’s exports, non-oil exports reached $27.4 billion in Financial Year 2023-24, recording an average growth of 25.6 percent since the entry into force of CEPA.
At the sectoral level, besides refined crude oil products and gems & jewelry products, electrical machinery and equipment, light & medium high technology goods like boilers, generators and reactors, and organic and inorganic chemicals have been major achievers.
Besides, at the product level, smartphones have emerged as a major item of export with shipments valued at $2.57 billion bound for the UAE during Financial Year 2023-24.
The India-UAE CEPA has resulted in a new era of economic partnership and diplomacy for both nations by empowering MSMEs, generating employment, and creating new business opportunities. India and the UAE are committed to enhancing their economic partnership to foster robust trade and opportunities and reach new heights, leveraging CEPA.
In July, India and the UAE reaffirmed their commitment to strengthening bilateral defense cooperation during the 13th India-UAE Joint Defense Cooperation Committee (JDCC) meeting, held at the Secretary level for the first time.
