The non-oil trade between the UAE and India has been flourishing in recent years, with the total value exceeding $53.5 billion in 2023, showing a growth rate of 3.9 per cent compared to the previous year. The Comprehensive Economic Partnership Agreement (Cepa) between the two countries has played a significant role in boosting bilateral trade, leading to a growth of 16.41 per cent since 2022. Minister of Economy Abdulla Bin Touq Al Marri highlighted the benefits of Cepa, which came into effect in May 2022, by stating that the trade between the two countries has grown remarkably, reaching $84.84 billion in 2022-2023.
Major Indian export sectors such as gems and jewellery, drugs and pharmaceuticals, and fruits and vegetables have seen substantial growth following the implementation of Cepa. Additionally, Indian Foreign Direct Investment (FDI) in the UAE is on the rise, with over 11,000 new Indian companies registered in 2022, totaling more than 83,000 Indian companies operating in the UAE. The UAE delegation recently visited India and engaged in discussions with the leaders of the Indian state of Tamil Nadu to strengthen cooperation in various sectors such as the new economy, tourism, entrepreneurship, and fintech.
Cooperation in startups and Small and Medium Enterprises (SMEs) is a vital aspect of Cepa, with the agreement aiming to promote startups through the exchange of best practices and collaboration between accelerators, incubators, and other ecosystem stakeholders. The launch of the ‘India-UAE Startup Bridge’ has facilitated information sharing regarding the Indian and UAE startup ecosystem, aiming to support capacity building, incubation opportunities, and fundraising support for startups. Al Marri emphasized the strategic economic, political, and cultural relations between the UAE and India, highlighting the importance of joint efforts in enhancing the economic partnership between the two countries.
The UAE’s Foreign Direct Investment in India covers key economic sectors such as renewable energy, software, IT services, and automotive manufacturing. The non-oil trade exchange between the UAE and India continues to grow, with the total value of non-oil trade exceeding $53.5 billion in 2023, showcasing a growth rate of 3.9 per cent compared to the previous year. Al Marri also discussed the UAE’s efforts in developing the tourism sector through the National Tourism Strategy 2031, aiming to raise the country’s status as the best tourism identity in the world and attract new investments to the sector.
In conclusion, the partnership between the UAE and India continues to strengthen, driven by the Comprehensive Economic Partnership Agreement and mutual cooperation in various sectors. The growth in bilateral trade, Indian FDI in the UAE, and the exchange of best practices in startups and SMEs showcase the potential for further economic collaboration between the two countries. As both nations look towards achieving the goal of $100 billion in non-oil trade by 2030, it is evident that the strategic partnership between the UAE and India will continue to grow and benefit both economies.
