India-UAE Bilateral Trade Set to Exceed $100 Billion
The bilateral trade between India and the United Arab Emirates (UAE) is on course to surpass the ambitious target of $100 billion well ahead of the 2030 deadline, according to a recent report. The trade has experienced a substantial year-on-year growth of 12.7%, reaching $85 billion in the fiscal year 2022-23, as indicated by a study conducted by Primus Partners. This growth highlights the UAE’s status as India’s third-largest trading partner and second-largest export market during this timeframe.
The recent visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, to India has further strengthened the economic ties between the two nations. Following discussions with Prime Minister Narendra Modi, they signed five Memoranda of Understanding (MoUs), marking a significant milestone in their bilateral relations.
Recent structural reforms, especially the Comprehensive Economic Partnership Agreement (CEPA) established in 2022, have removed longstanding trade barriers and ushered in a new phase of economic cooperation. "This trade expansion not only bolsters existing sectors such as gems, jewellery, and information technology but also paves the way for emerging industries like green energy and food security," remarked Nilaya Varma, CEO and Co-founder of Primus Partners.
Both countries are forging significant collaborative projects, including the India-Middle East-Europe Economic Corridor (IMEEC) and the India-Israel-UAE-US (I2U2) coalition, aimed at enhancing connectivity and economic integration across regions.
The India-UAE economic partnership is set to deepen with initiatives like a master dashboard for tracking critical infrastructure projects and the creation of a bilateral e-commerce marketplace for goods and services. This marketplace may utilize India's Open Network for Digital Commerce (ONDC) model to facilitate smooth digital transactions between the two nations. Plans are also underway to develop an online digital repository to highlight investable projects in identified strategic sectors.
Nader Haffar, Director of Primus Partners UAE, emphasized that the bilateral relationship has transformed into a multifaceted partnership reshaping both regional and global trade dynamics. "The collaboration between two of the world’s fastest-growing economies is creating fresh opportunities, promoting innovation, and laying the groundwork for long-term prosperity that could serve as a global benchmark for emerging market partnerships", stated Haffar.
Gems and jewellery, traditionally a vital component of trade between India and the UAE, have seen increased activity under the CEPA framework. Furthermore, India's agricultural exports, including cereals, sugar, fruits, vegetables, and tea, significantly contribute to addressing the UAE’s food security needs, enriching the expanding trade portfolio.