India’s Trade With UAE Hits $100B: What’s Driving the Growth
The India–UAE Comprehensive Economic Partnership Agreement (CEPA) has completed three years, and it’s proving to be a big success for both countries. Signed in 2022, the deal was meant to make trade easier, faster, and more profitable. So far, it’s doing just that.
Trade Between India and UAE is Booming
Since the agreement came into effect, trade between India and the UAE has gone up sharply. In the financial year 2024–25, the two countries crossed $100 billion in total trade—something that seemed far off just a few years ago.
Indian exports to the UAE have seen strong growth. Key sectors like gems and jewellery, medicines, agriculture products, and engineering goods have benefited the most. For example, jewellery exports jumped 64%, while pharma exports grew 39%.
What Indian Businesses Are Gaining
The biggest benefit of CEPA is that it cuts down import duties. This makes Indian goods cheaper in the UAE market. More than 90% of Indian exports now enjoy low or zero duty in the UAE.
The textile, footwear, food, and machinery sectors are already seeing gains. Small and medium businesses in India are especially benefiting from easier market access and fewer trade barriers.
Services and Startups Also Get a Boost
It’s not just about products. Services like IT, education, healthcare, tourism, and finance are also part of the deal. Both countries have opened up over 100 service sectors for each other.
The CEPA is also encouraging innovation. For example, the UAE–India CEPA Council is now working with BHU’s Atal Incubation Centre to support Indian startups and help them enter the UAE market.
Digital Trade and Payment Links
India and UAE are building stronger digital ties. The goal is to allow real-time payments, better tracking of shipments, and paperless trade. Platforms like MAITRI are being used to speed up cross-border deals, especially for MSMEs.
There are also discussions about linking UPI with UAE’s payment systems to make business transactions smoother.
Some Challenges Remain
Despite the good progress, there are still issues to fix. Indian jewellers have asked for more transparency in the gold import quota system. There have also been talks about rising imports of silver and dates, which some Indian businesses see as a concern. Both governments are aware of these issues and have agreed to review them.
The India–UAE CEPA has opened up a new chapter in trade and cooperation. It is helping both countries grow together. For Indian businesses—big or small—this deal offers many opportunities. And with time, it could become a model for similar partnerships with other countries.
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