India-UAE non-oil trade target of $100 bn by 2030 ambitious: CII President

The target of achieving a $100 billion non-oil trade between India and the UAE by 2030 is not just ambitious but also attainable, asserts CII President R Dinesh. Speaking at the Investopia global investors’ event and various bilateral meetings, including those at the WTO Ministerial Conference, Dinesh highlighted the vast business opportunities in both nations, particularly in sectors like textiles, jewellery, and pharmaceuticals.

He emphasized the significant impact of the free trade agreement between India and the UAE, implemented in May 2022, which has spurred a remarkable surge in bilateral trade and investments. According to Dinesh, the agreement, officially known as the comprehensive economic partnership agreement, encompasses duty-free access to various labor-intensive sectors, including gems and jewellery, textiles, pharmaceuticals, and engineering products.

Bilateral trade has already surged to $84.9 billion in 2022-23, positioning India as the UAE’s leading non-oil trading partner. The symbiotic relationship between India’s vast consumer base and growing manufacturing capabilities and the UAE’s status as a global trade hub has created an attractive market for UAE goods and facilitated Indian exports access to international markets.

While the UAE remains a major supplier of crude oil to India, the agreement extends far beyond oil shipments. It presents a game-changing opportunity for businesses in a plethora of service sectors, including telecommunications, construction, education, finance, healthcare, tourism, hospitality, and transportation.

The pact also serves as a catalyst for Indian and UAE companies to integrate into global supply chains and promote manufacturing in both countries. Notably, foreign direct investment (FDI) from the UAE to India has tripled, reaching $3.35 billion in 2022-23, a testament to the promising partnership between the two nations.

In discussions, Dinesh underscored the potential to leverage this FDI surge for initiatives like ‘Make in India’ and ‘Made in Emirates,’ fostering collaboration in manufacturing and bolstering economic growth and innovation in both countries. The agreement heralds a new era of economic cooperation, promising mutual prosperity and shared opportunities on the global stage.