Beyond $100bn: How India and the UAE are building deeper economic ties

Since the 2022 implementation of the Comprehensive Economic Partnership Agreement (Cepa), trade and economic relations between India and the United Arab Emirates have strengthened. The agreement has led to a surge in trade, surpassing $100 billion by the end of the 2025-2026 fiscal year from around $60 billion when it was initiated.

The Cepa has facilitated improved market access, reduced or eliminated tariffs, and streamlined customs procedures, among other benefits. Dr Thani Al Zeyoudi, UAE Minister of Foreign Trade, announced during the signing that 80% of tariffs between the two nations had been eliminated, with all tariffs slated for removal within a decade.

The UAE, India's third-largest trading partner and second-largest export destination, aims to double bilateral trade to $200 billion by 2032. Both countries engage in trade of various goods, including petroleum products, gems and jewelry, food, textiles, chemicals, electronic goods, and engineering items. Investment has expanded across energy, infrastructure, private equity, financial services, and real estate, with major players like Mubadala Investment Company, Abu Dhabi Investment Authority, and DP World making significant investments in India.

India holds the seventh position among UAE's overseas investors, with a $25.59 billion cumulative foreign direct investment from 2000 to 2026. India ranks as India's second-largest trading partner after China. In May 2023, Indian Prime Minister Narendra Modi visited the UAE, leading to several agreements, including a storage deal for up to 30 million barrels of UAE crude oil in India and a potential crude storage opportunity in Fujairah.

UAE's push for diversification has resulted in 37 Comprehensive Economic Partnership Agreements, with non-oil trade with these nations reaching Dh304.3 billion ($82.9 billion) by the first half of 2026.