India-UAE Bilateral Trade Poised to Surpass $100 Billion

By siliconindia  |  Tuesday, 24 September 2024, 02:14:22 PM IST

India-UAE Bilateral Trade Poised to Surpass $100 Billion
Bilateral trade between India and the United Arab Emirates (UAE) is on track to exceed the ambitious $100 billion target well ahead of the 2030 deadline, as highlighted by a recent report. The trade has experienced a significant year-on-year increase of 12.7%, reaching $85 billion in the fiscal year 2022-23, according to a study by Primus Partners. This surge underscores the UAE's position as India's third-largest trading partner and second-largest export destination during this period.
The strengthening economic ties between India and the UAE were further solidified by the recent visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, to India. Following discussions with Prime Minister Narendra Modi, the two nations signed five Memoranda of Understanding (MoUs), marking a pivotal moment in their bilateral relations.
Recent structural reforms, particularly the Comprehensive Economic Partnership Agreement (CEPA) established in 2022, have dismantled long-standing trade barriers and initiated a new era of economic collaboration. "This trade growth not only reinforces existing sectors such as gems, jewellery, and information technology but also opens avenues for emerging industries like green energy and food security", noted Nilaya Varma, CEO and Co-founder of Primus Partners.
Both countries are paving the way for significant collaborative initiatives, including the India-Middle East-Europe Economic Corridor (IMEEC) and the India-Israel-UAE-US (I2U2) coalition. These partnerships aim to enhance connectivity and economic integration across regions.
The India-UAE economic relationship is set for further enhancement with initiatives such as the implementation of a master dashboard to monitor critical infrastructure projects and the establishment of a bilateral e-commerce marketplace for goods and services. This marketplace could leverage India's Open Network for Digital Commerce (ONDC) model, promoting seamless digital transactions between the two nations. Additionally, plans are in place to create an online digital repository that showcases investable projects in identified strategic sectors.
Nader Haffar, Director of Primus Partners UAE, emphasized the evolution of the bilateral relationship into a multifaceted partnership that is reshaping regional and global trade dynamics. "The synergy between two of the world’s fastest-growing economies is generating new opportunities, fostering innovation, and establishing a foundation for long-term prosperity that could serve as a global model for emerging market partnerships", Haffar stated.
Gems and jewellery, traditionally a cornerstone of trade between the two countries, have witnessed increased activity under the CEPA. Additionally, India's agricultural exports, including cereals, sugar, fruits, vegetables, and tea, play a significant role in addressing the UAE's food security objectives, further contributing to the expanding trade basket.

ON THE DECK

Top Banner

Related Articles