A significant trade agreement between the UAE and India has triggered an impressive surge in bilateral commerce. Merchandise trade escalated from $43.3 billion in the fiscal year 2020–21 to $80.5 billion in the first ten months of the current fiscal year, according to recent data. This remarkable growth positions both nations on track to exceed their $100 billion trade target well ahead of the 2030 deadline.

According to Khaleej Times, the Comprehensive Economic Partnership Agreement (Cepa), signed three years ago, has revitalized economic relations and set the stage for a new model of global economic collaboration. Faizal Kottikollon, chairman of the UAE India Business Council’s UAE Chapter (UIBC-UC), emphasized that the agreement is not just a milestone but a transformative force in the trade landscape. The recent high-profile event celebrating the second anniversary of the UIBC-UC and the third year of the trade pact was attended by prominent officials, including UAE Minister of State for Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi and Indian Ambassador Sunjay Sudhir.

Dr. Al Zeyoudi praised the Cepa as a gamechanger, noting its pivotal role in opening new trade and investment opportunities. He highlighted that non-oil trade, a crucial aspect of the UAE’s diversification strategy, has been significantly enhanced, with the nation’s non-oil foreign trade reaching a record Dh3 trillion ($816.7 billion) in 2023. This figure marks a 14.6 percent increase year-on-year, greatly surpassing the global trade growth rate of only 2.0 percent.

Ambassador Sudhir pointed out the importance of investing in talent and innovation as the foundation for sustainable growth. His comments coincided with the launch of new research initiatives aimed at helping policymakers and businesses navigate the evolving trade landscape. The successful impact of Cepa is reflected in the diversification of trade flows, with India’s non-oil exports to the UAE hitting $27.4 billion in FY 2023–24, a remarkable annual growth rate of 25.6 percent since the agreement took effect.

While traditional sectors like gems, jewelry, and refined petroleum products remain critical, emerging industries are now driving growth. Exports of electrical machinery, industrial boilers, and organic chemicals have surged, with smartphone shipments to the UAE reaching $2.57 billion this fiscal year. Kottikollon remarked that these figures represent more than just statistics; they symbolize job creation, innovation, and mutual prosperity.

The UAE’s broader Cepa strategy, which includes similar agreements with several countries, has contributed Dh135 billion to non-oil trade with partner nations, reflecting a 42 percent annual increase. With a total foreign trade of Dh3 trillion already achieved in 2023, the UAE is on track to meet its ambitious Dh4 trillion trade target by 2031, seven years ahead of schedule.

Operational efficiency has been essential to the success of the Cepa. Indian exporters have utilized preferential tariffs under the agreement through 240 000 Certificates of Origin, which have facilitated $19.87 billion in exports. To overcome challenges, both nations established a joint committee that has convened twice at the senior official level, addressing customs procedures and trade regulations. An Indian commerce ministry official confirmed that ongoing meetings yield tangible solutions, enhancing cooperation.

The future growth of this partnership may rely on infrastructure developments like the Bharat Mart, a Dubai-based megaproject launched by Prime Minister Narendra Modi. This facility is designed to serve as a “one-stop shop” for global buyers seeking Indian goods, facilitating exports across diverse sectors from textiles to engineering products.

As global protectionist trends rise, the UAE-India partnership serves as a model for South-South cooperation. The Indian Commerce Ministry recognizes Cepa as a catalyst for empowering MSMEs, creating jobs, and ushering in a new era of economic diplomacy. For the UAE, which is already the second-largest economy in the Arab world, this agreement strengthens its position as a gateway connecting Asia, Africa, and Europe.

Kottikollon concluded by asserting that the partnership is not just on course to achieve the $100 billion target but is also reshaping the possibilities of trade dynamics. With bilateral trade expanding at over 20 percent annually since the Cepa’s implementation, the anticipated future growth may arrive sooner than expected.