India and the United Arab Emirates are deepening their economic ties. These two nations recently held important discussions aimed at significantly boosting **trade** and investment across crucial sectors. Think big, like infrastructure, energy, and cutting edge technology. It’s all about creating more opportunities and growth.
Union Commerce and Industry Minister, Piyush Goyal, shared insights on X, confirming that both countries are fully committed to strengthening their partnership. He warmly welcomed Dr. Thani Al Zeyoudi, the UAE’s Minister of Foreign Trade, congratulating him on his new role. Their conversations revolved around expanding **trade** and investments in those key areas: infrastructure, energy, and technology. There’s a shared vision for unlocking new avenues of growth, working together every step of the way.
This strong commitment isn’t new. The Economic Partnership Agreement, or CEPA, between India and the UAE, celebrated its third anniversary in February. This agreement has been a game-changer, fostering incredible progress in bilateral relations.
The Ministry of Commerce and Industry paints a clear picture of this success. Since CEPA was signed, the bilateral merchandise **trade** has seen an astonishing jump. It nearly doubled, soaring from USD 43.3 billion in FY 2020-21 to an impressive USD 83.7 billion in 2023-24. And the momentum continues! As of January in the current fiscal year, it has already hit USD 80.5 billion. It’s clear that CEPA is performing exceptionally well, particularly in diversifying the **trade** basket. Non-oil **trade** reached USD 57.8 billion in FY 2023-24, making up more than half of the total **trade**. This puts both nations on track to achieve their ambitious target of USD 100 billion in bilateral non-oil **trade** by 2030.
When it comes to using CEPA’s preferential duties, the numbers are equally impressive. Since its implementation, nearly 240,000 Certificates of Origin have been issued. This has facilitated total exports worth USD 19.87 billion to the UAE. Talk about maximizing the benefits of an agreement!
India’s non-oil exports have also shown remarkable growth, reaching USD 27.4 billion in FY 2023-24. This represents an average growth rate of 25.6 percent since CEPA came into force. This consistent growth highlights the agreement’s effectiveness in boosting India’s export capabilities.
Looking at specific sectors, beyond the traditional refined crude oil products and gems and jewelry, there have been major gains. Electrical machinery and equipment, along with light and medium-high technology goods such as boilers, generators, and reactors, have excelled. Organic and inorganic chemicals have also been significant performers. These sectors are clearly benefiting from the enhanced partnership and increased **trade** opportunities.
And there’s one product that truly stands out: smartphones. They’ve emerged as a key export item. Shipments of smartphones to the UAE were valued at USD 2.57 billion during FY 2023-24. This shows how diversified the **trade** relationship has become and the demand for high-tech goods.
The India-UAE CEPA is ushering in a new era of economic partnership and diplomacy for both nations. It’s empowering MSMEs, creating new employment opportunities, and fostering dynamic business ventures. Both India and the UAE are firmly committed to strengthening their economic partnership even further. Their goal is to cultivate robust **trade** and unlock new opportunities, leveraging CEPA to reach unprecedented heights. This forward-looking approach ensures continued prosperity and collaboration between these two strategic partners.
It’s not just about economics either. In July, India and the UAE reinforced their commitment to strengthening bilateral defense cooperation. This happened during the 13th India-UAE Joint Defence Cooperation Committee meeting, which, for the first time, was held at the Secretary level. This demonstrates a comprehensive and multi-faceted partnership that extends beyond just **trade** to encompass strategic areas like defense.