May 2, 2025- Dubai/New Delhi- The UAE-India trade relationship has reached a historic milestone. The trade volume has reached a historic first for both countries at the milestone of $100 billion, five years ahead of the original target of 2030. This remarkable progression can be attributed to CEPA, as the mega trade pact has substantially enhanced the economic partnership between the two nations.
UAE-India Trade: A Rapid Growth Story
The trade alliance has been a historic relationship between the UAE and India over time. Actually, the signing of the CEPA 2022 in February was a major milestone for the robust and growing bilateral trade between both nations. The date of entry into force was on 1 May 2022, and the results began to pour in, with trade between the UAE and India booming.
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Bilateral trade figures for the year 2020-21 stated that trade had stood at $43.3 billion. This had nearly doubled by the 2023-24 trade turnover of $83.7 billion. In the first 10 months of the current fiscal year, however, trade between the UAE and India had almost reached $80.51 billion, reflecting a growth of over .21% as compared to that of the last year.
A target of achieving non-oil trade worth $100 billion seems to have been set a long time ago. CEPA seems to have successfully diversified the trade basket, as non-oil trade is expected to touch $57.8 billion in 2023-24, which would constitute more than half of the total UAE-India trading relations.
Key Sectors and Benefits of UAE-India Trade
Goods and other services encompassed under this particular trade umbrella include a whole kaleidoscope. Traditional sectors, including oil, gems, and jewelry, still account for large sections of trade, but entirely new sectors are making inroads into the UAE market. India has emerged as a supplier of varied goods to the UAE; some important good categories include electrical machinery, high-tech items, chemicals, and mobile phones, with a huge share of mobile-phone exports alone worth $2.57 billion in the financial year 2023-24.
CEPA has enabled Indian exporters to get into the UAE and other Gulf markets. Since it came into force, almost 240,000 certificates of origin have been issued for exports worth $19.87 billion to the UAE. The agreement gives Indian exporters preferential access to areas neighboring the UAE, particularly those belonging to the Gulf Cooperation Council.
The trade relationship has mutual benefits for both countries. As the third-largest trading partner and the second-largest exporting market for India, the UAE, conversely, views India as the second-largest trading partner. The enhanced trade relations have also given skills and business opportunities in both directions: to the UAE from India, as well as to India from the UAE.
Data: UAE-India Trade Growth
| Financial Year | Total Trade (USD Billion) | Non-Oil Trade (USD Billion) | India’s Exports (USD Billion) | UAE’s Exports to India (USD Billion) |
| 2020-21 | 43.3 | N/A | N/A | N/A |
| 2022-23 | 85.0 | N/A | N/A | 25.02 |
| 2023-24 | 83.7 | 57.8 | 37.1 | N/A |
| 2024-25 (Apr-Jan) | 80.51 | N/A | 30.0 | N/A |
Source: Ministry of Commerce, Government of India; United Nations COMTRADE
The Road Ahead for UAE-India Trade
The future of UAE-India trade looks bright. The CEPA has now included new areas for cooperation in addition to goods trade. Joint initiatives in education, technology, and green energy are being explored by the two countries. The establishment of Indian educational institutes in Dubai, such as the Indian Institute of Technology, is a sign of even deeper engagement.
The UAE-India trade has crossed the $100 billion mark, and attention will now turn to maintaining the momentum and exploring new sectors. The two countries are also working toward growing services trade to $15 billion in the next five years.
The UAE-India trade partnership exemplifies international cooperation. The early achievement of the $100 billion mark heralds the onset of a new era of prosperity and collaboration between the two countries. With the expansion of CEPA, there is no doubt that UAE-India trade will usher in even better times in the years to come.
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