India and the United Arab Emirates explore possibilities for collaboration in maritime and space sectors.
India-UAE Trade Relations Soar Under CEPA
The Comprehensive Economic Partnership Agreement (CEPA) signed in 2022 between India and the United Arab Emirates (UAE) is driving a surge in bilateral non-oil trade. In the first half of 2025, non-oil trade between the two countries rose 34% year-on-year to nearly $38 billion.
The latest development was discussed at the 13th meeting of the high-level joint task force on investments, which took place in Abu Dhabi. The meeting was co-chaired by commerce and industry minister Piyush Goyal and Sheikh Hamed bin Zayed Al Nahyan, managing director of the Abu Dhabi Investment Authority.
The discussions reviewed progress on existing projects such as Bharat Mart, a trading hub for showcasing Indian products to global buyers. The forum, created in 2013, has emerged as a key platform for channelling capital flows between the two economies.
Under CEPA, market access has expanded for Indian textiles, food products, and engineering goods, while the UAE has gained a stronger foothold in Asia's second-largest market. Imports from the UAE are primarily crude oil and petroleum products, along with liquefied natural gas (LNG).
In FY25, bilateral trade between India and the UAE surged to $99.7 billion, with $36.3 billion in exports and $63.4 billion in imports. India's export portfolio to the UAE includes refined petroleum products, chemicals, gems and jewellery, pharmaceuticals, textiles, garments, and agricultural products like rice, pulses, and spices.
The UAE is India's third-largest trading partner. Sheikh Hamed described the partnership as anchored in 'shared goals and joint success' and stated that the task force will remain central to driving the relationship forward.
Beyond trade and finance, the partnership between India and the UAE is evolving into long-term strategic collaboration. The discussion also touched upon fresh cooperation in the space and maritime sectors. Both sides addressed investor concerns and agreed to resolve them quickly through coordination among government agencies.
Work is underway on linking India's Unified Payments Interface (UPI) with UAE platforms, a move expected to cut transaction costs and reduce exchange rate risks for businesses. Both delegations are also exploring initiatives to settle trade in local currencies, integrate payment systems, and explore the use of Central Bank Digital Currencies.
Investing in India offers the UAE a hedge against oil reliance and a gateway to broader Asian markets. The UAE is a major source of foreign direct investment (FDI) for India, particularly in sectors like energy and ports.
At the meeting, Goyal emphasized opportunities for UAE investors in infrastructure, renewable energy, and advanced sectors like space technology. The partnership between India and the UAE is indeed a testament to shared goals and joint success, as both nations continue to forge ahead in their strategic collaboration.
