UAE-India Trade Targets $100 Billion, Bolstered by Landmark Agreement and Strategic Partnerships

UAE, 29 April, 2024 : Following the landmark free trade agreement signed in May 2022, the UAE and India are making significant strides towards surpassing a target of $100 billion in bilateral non-oil trade by 2030.

Ahmed Aljneibi, Cepa Council Director, revealed that bilateral trade has surged by nearly 15% since the Comprehensive Economic Partnership Agreement (CEPA) came into effect on May 1, 2022. With initiatives like tariff reductions and streamlined business approvals, trade between the two nations has soared from $72.9 billion in FY22 to $84.5 billion in FY23.

The UAE stands as India's second-largest export destination and third-largest trading partner, while India ranks as the UAE’s second largest trading partner after China.

Notably, the UAE's direct investments in India reached about $17 billion by September 2023, making it the seventh-largest investor in India globally. Conversely, Indian investments in the UAE reached $8 billion, with the total value of mutual investments amounting to $25 billion, primarily driven by UAE investments in India.

India's Prime Minister Narendra Modi has played a pivotal role in enhancing bilateral relations with the UAE, fostering collaborations beyond traditional sectors like energy and trade to encompass investment, defence, and security cooperation.

Recent measures, such as permitting the use of local currencies for cross-border transactions and linking India's payment system (UPI) with the UAE's instant payment system (Aani), are expected to further bolster trade and investment flows between the two nations.

Moreover, the GCC remains India's largest regional trading partner, with trade comprising 15.8% of India’s total trade in FY2022–23. These developments underscore the deepening economic ties and mutual cooperation between India and the UAE, setting the stage for continued growth and prosperity.

Source : www.zawya.com