India-UAE bilateral trade expected to exceed $100 billion before 2030
Growing Economic Ties Strengthened by CEPA and Strategic Initiatives
India-UAE Bilateral Trade Poised to Exceed $100 Billion Ahead of 2030 Target
Bilateral trade between India and the United Arab Emirates (UAE) is on track to surpass the $100 billion target by 2030, underpinned by a remarkable 12.7 percent (year-on-year) increase, a report said on Tuesday.
India’s second-largest export destination and third-largest trading partner is the United Arab Emirates (FY2022-23).
According to a report by Primus Partners, bilateral trade reached $85 billion in FY 2022-23 and is expected to cross the 2030 target of $100 billion ahead of the expected deadline.
India-UAE economic ties were strengthened by the recent visit of Sheikh Khalid bin Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi. Following the meeting between Prime Minister Narendra Modi and the Crown Prince, the two countries signed five MoUs.
India-UAE trade relations are entering a new era, driven by structural reforms such as the 2022 Comprehensive Economic Partnership Agreement (CEPA) that has broken down longstanding barriers.
“This trade growth not only strengthens existing sectors like gems, jewelery and IT, but also paves the way for emerging industries like green energy and food security,” said Nilaya Verma, CEO and co-founder, Primus Partners. .
The two countries are leading major joint ventures including the India-Middle East-Europe Economic Corridor (IMEEC) and the India-Israel-UAE-US (I2U2) alliance.
The India-UAE economic relationship is set to be further strengthened with initiatives such as the implementation of a master dashboard to oversee critical infrastructure projects; Establishing a two-way e-commerce marketplace for goods and services, promoting India’s Open Network for Digital Commerce (ONDC) model and creating an online digital repository highlighting investable projects in identified strategic sectors,
Nader Hafar, Director of Primus Partners UAE, said the bilateral relationship has evolved into a multifaceted partnership that will reshape the future of regional and global trade.
“This synergy between two of the world’s fastest-growing economies creates new opportunities, fosters innovation and lays the foundation for long-term prosperity that can serve as a global model for emerging market partnerships,” Huffer added.
Gems and jewellery, traditionally the cornerstone of trade, have seen increased activity under CEPA. Metals, stones, gems and jewelery are among India’s major exports to the UAE.
Additionally, India’s agricultural exports to the UAE, including grains, sugar, fruits, vegetables and tea, contribute significantly to the trade basket, helping to address the UAE’s food security objectives.
