India-UAE Trade Hits Record $100 Billion, Sets Sights on $100 Billion Non-Oil Target
In a landmark achievement, bilateral trade between India and the United Arab Emirates (UAE) has surged past the $100 billion mark, reaching $100.06 billion in the 2024-25 financial year. The milestone, confirmed during the third Joint Committee meeting of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in New Delhi, highlights a robust 19.6% year-on-year growth, cementing the UAE’s position as one of India’s top trading partners.
CEPA Review and Key Discussions
The high-level meeting served as a comprehensive review of the CEPA, which has been a primary driver of this trade explosion. Officials from both nations delved into critical trade facilitation issues, including:
Market Access: Streamlining entry for goods and services.
Gold Tariff-Rate Quotas (TRQ): India updated the UAE on its new transparent, competitive bidding mechanism for TRQ allocation.
Regulatory Hurdles: Addressing anti-dumping concerns and coordinating on Rules of Origin.
Bureau of Indian Standards (BIS): Improving licensing processes to ease market entry for UAE products.
The New Frontier: A $100 Billion Non-Oil Trade Goal
Moving beyond the headline figure, both countries set an ambitious new target: to double non-oil, non-precious metals trade to $100 billion in the coming years. Currently valued at approximately $50-55 billion, this segment is the next frontier for the strategic partnership.
This shift signifies a concerted effort to diversify the trade basket beyond hydrocarbons and gold, building a more resilient and balanced economic relationship.
Strengthening Regulatory Cooperation
A significant part of the discussions focused on aligning regulations to enable this non-oil trade growth. Key sectors identified for deeper cooperation include:
Pharmaceuticals: Ensuring faster market access for Indian medicines.
Food Products: Finalizing a Memorandum of Understanding (MoU) between India’s APEDA and the UAE’s Ministry of Climate Change & Environment to harmonize food safety and technical standards.
Industrial Goods: Enhancing coordination under the Bureau of Indian Standards (BIS).
The Road Ahead: Deepening the Strategic Partnership
The meeting concluded with agreements to improve data sharing, bolster regulatory cooperation, and schedule the next Services Subcommittee meeting. The success of the CEPA agreement is now seen as a foundation for a much broader economic partnership.
Why This Milestone Matters
Crossing the $100 billion trade threshold underscores the rapid acceleration of India-UAE economic ties under CEPA. The agreement has successfully diversified India’s exports to the UAE, which now span a wide range of commodities and finished goods.
The renewed focus on non-oil trade, combined with active resolution of structural bottlenecks, demonstrates a mature partnership focused on long-term, sustainable growth rather than just headline numbers. Observers believe the goal of $100 billion in non-oil trade is achievable within the next 3-4 years, given the strong political will and operational momentum from both sides.
If realized, this would transform the India-UAE relationship from one historically influenced by oil and precious metals into a diversified, multi-sectoral economic powerhouse.
