Bilateral trade between the UAE and India has seen a significant increase of nearly 15% over the past two years since the implementation of the Comprehensive Economic Partnership Agreement (CEPA) in May 2022.
This growth includes a notable 20% rise in non-oil trade during the 2023-2024 financial year. Ahmed Aljeibi, Director of the UAE-India CEPA Council, highlighted that UAE exports to India grew by over 7%, while Indian exports to the UAE surged by 27% during this period.
CEPA is a strategic trade agreement between the UAE and India that aims to enhance bilateral economic relations by facilitating trade in goods and services, reducing tariffs, and improving customs procedures, signed on February 18, 2022. In 2023, the UAE became the fourth largest foreign investor in India, with a $3.35 bn commitment representing 3x increase on 2022. This capital is targeting sectors of transformational potential, including logistics, healthcare, food production systems, retail, RE, aviation, tourism and financial services, with a target of achieving $100 billion in bilateral trade within five years. At a recent event celebrating the second anniversary of the CEPA, officials discussed its transformative impact, including the establishment of stronger and more diversified supply chains. Major sea freight operators such as Maersk add services between the UAE and India, while a new Bengal Middle East Express has been launched to connect Kolkata with Jebel Ali in the UAE. Etihad has also increased cargo capacity on flights to India and Asia to meet growing demand.
