July 2, 2025 | Dubai, UAE – India and UAE ties have run deeper than just global connections by benefiting mutually on various economical, political and cultural dimensions, and now also through the robust influence of UAE in steel and aluminium sectors.
Union Minister H D Kumaraswamy, Minister of Heavy Industries and Steel of India met H.E. Abdulla Bin Touq Al Marri, UAE’s Minister of Economy on Tuesday, in Abu Dhabi. The meeting was said to be a part of an elevated initiative with the aim to strengthen India and UAE ties and industrial collaborations. Efforts have been initiated under the framework of India-UAE Comprehensive Economic Partnership Agreement (CEPA). The conference focused on trade expansion, resource security and collaborating innovation in India and UAE in the steel and aluminium sector.
“India and UAE can be strong partners in green steel production and sustainable industrial growth. UAE can play a key role in helping India reach its 300 million tonne steel production target by 2030, particularly by supporting raw material security and enabling energy-efficient production systems,” said the union minister H D Kumaraswamy.
India’s Vision Of National Steel Policy
The National Steel Policy (NSP) was launched by the Ministry of Steel in 2017 with the vision of building a modern, globally competitive steel industry in India. The policy focuses on self-reliance, fulfilling production for domestic demands, boosting consumption with improvised quality and reducing the carbon footprint. India targets to produce 300 million tonnes (MT) by 2030-31 of crude steel along with per capita consumption of 158 kg and reduce using coking coal to 65%.
To achieve the goals, contribution of UAE in steel and aluminium sectors becomes indispensable to India and UAE ties. Low silica limestone from Ras Al Khaimah can provide long term tie-ups and resource security, while UAE’s expertise in green hydrogen production can help India achieve the green steel target. Also, there is potential for an extensive market in UAE in steel and aluminium sectors that India can sell to, further strengthening the India and UAE ties and trade partnership.
PSU’s Role In Enhancing India-UAE Industrial Partnership
Indian Public Sector Undertakings (PSUs), namely, Steel Authority of India Ltd (SAIL), National Mineral Development Corporation (NMDC), and Metallurgical & Engineering Consultants India Ltd (MECON) are willing to actively expand their presence, backed by their strong industrial India UAE ties. Their proactive involvement is central to advancing the India-UAE ties and industrial partnerships such as CEPA:
- SAIL is a Maharatna CPSE. It currently buys around 2.5 million tonnes of low-silica limestone from Ras Al Khaimah’s Stevin Rock LLC annually. The company is willing for long-term supply agreements that will also support the UAE’s infrastructure and industrial sectors with high-quality Indian steel.
- NMDC, which is also India’s largest iron ore producer, is seeking a partnership with UAE-based firms to improve the mining value chain and explore new opportunities in R&D.
- MECON is an Indian engineering consultancy which is establishing itself to contribute to oil, gas, steel plant development, and smart infrastructure projects across the Gulf region.
- In a significant step forward in India and UAE ties, SAIL, NMDC, and MECON have set up their own cross border offices in Dubai, creating a dedicated centre for trade facilitation, joint ventures, and technology collaboration.
The Union Minister put forward the idea of a joint working team of Indian and UAE stakeholders to explore opportunities under CEPA, and foster deeper India and UAE ties, even extending polite invites to UAE investors for visiting India to experience the innovation steel sector and the drive behind it. The meeting came to an end by assuring a mutual commitment to advancing joint projects and trade frameworks, supporting India’s vision of a $5 trillion economy.
Since the signing of the India-UAE CEPA in 2022, bilateral merchandise trade rose from $43.3 billion in FY21 to $83.7 billion in FY24. A key aspect under CEPA is to improve the non-oil trade to $100 billion by 2030, achievable with growing interest from the UAE in steel and aluminium sectors.
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