Strategic Ties Between UAE and India Drive Trade and Investment Surge

UAE, 8 April, 2025 : Economic relations between the UAE and India continue to deepen, with strong momentum across trade, investment, energy, and technology sectors. This strategic partnership has evolved from traditional trade ties into a dynamic economic alliance with long-term growth potential.

A recent report by Dubai Chambers, released during the Dubai-India Business Forum, highlighted the UAE as India’s third-largest global trading partner in 2024, with imports worth $60.1 billion and exports at $37.8 billion.

Dubai remains a key player, contributing 85% of the UAE’s non-oil trade with India. The city’s non-oil trade surged from $36.7 billion in 2019 to $45.4 billion in 2023, largely due to the UAE-India Comprehensive Economic Partnership Agreement (CEPA) signed in 2022.

In 2023, Dubai’s top exports to India included precious stones and metals ($14.65 billion), machinery, plastics, and aluminum. Imports were led by similar high-value goods, including electronics and mineral fuels.

On the investment front, the UAE invested $2.9 billion in India during FY 2023–24, ranking as India’s seventh-largest investor. This underscores a growing trust in India’s long-term economic prospects.

India is projected to grow at an average of 6.5% annually between 2025–26, driven by government-led infrastructure projects, rising rural demand, and robust private sector investment. Inflation is expected to ease to 4.3% in 2025, improving overall economic stability.

With strong manufacturing expansion, especially in electronics and pharmaceuticals, India is poised to remain one of the world’s fastest-growing major economies—strengthening its strategic economic alliance with the UAE.