India-UAE Trade Relations
The trade relationship between India and the United Arab Emirates (UAE) has seen significant growth, particularly after the implementation of the Comprehensive Economic Partnership Agreement (CEPA).
Key Trade Statistics
- Trade between India and the UAE increased by 14.76% year-on-year in 2023-24, reaching a total of $83.64 billion.
- India's exports to the UAE surged by 27.03% while UAE's exports to India increased by 7.09%.
- The CEPA, in force since May 1, 2022, has significantly reduced trade barriers, facilitating this growth.
Trade History and Position
- Trade has grown from a modest $180 million annually in the 1970s to the current figures.
- The UAE is now India's third-largest trading partner, following the United States and China.
- It has also emerged as India's second-largest export destination.
Food Security and Investment Initiatives
- Food security is a key area of focus, with the UAE pledging to invest more than $2 billion in integrated food parks across India.
- The $7 billion UAE India Food Security Corridor aims to bolster regional and global food supply chains through advanced agri-tech solutions.
Non-oil Trade and Investments
- India's non-oil trade with the UAE increased by 20.1% to $59.72 billion in 2023-24.
- Indian investments in the UAE amounted to approximately $1.16 billion, covering industries from technology to logistics.
- The UAE stands as India's fourth-largest foreign investor, committing $3.35 billion to support various sectors in India.
CEPA Council and Future Priorities
The UAE India CEPA Council, launched in 2024, is a bilateral body backed by both governments.
- Its objective is to facilitate investments and trade between the two nations.
- Focus areas include startups, women’s entrepreneurship, micro, small, and medium enterprises (MSMEs), and the services sector.