India-UAE Trade Nearly Doubles in Three Years Following CEPA Signing

Bilateral trade between India and the United Arab Emirates has nearly doubled in the three years since the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, according to recent reports. This milestone reflects the robust economic partnership fostered by the agreement, which has streamlined trade processes and reduced tariffs. 

A Historic Economic Partnership 

The CEPA, signed in February 2022 and implemented in May of the same year, aimed to boost trade and investment between the two nations by eliminating or significantly reducing customs duties on a wide range of products. The results have been remarkable: 

• Trade Growth: Bilateral trade between India and the UAE surged from $50 billion in 2021 to approximately $85 billion in 2024, reflecting an almost 70% increase. 

• Exports: India’s exports to the UAE, including gems, jewelry, pharmaceuticals, and agricultural products, saw a significant rise. 

• Imports: The UAE’s exports to India, particularly in petroleum products, aluminum, and polymers, also experienced substantial growth. 

Sectoral Highlights 

1. Gems and Jewelry: The CEPA facilitated duty-free access for Indian gems and jewelry, boosting exports to the UAE by over 25%. 
2. Pharmaceuticals: Indian pharmaceutical companies benefited from streamlined regulatory approvals, expanding their footprint in the UAE market. 
3. Agriculture: Reduced tariffs on agricultural products led to a surge in Indian food exports, including rice, spices, and fruits. 

Strengthening Economic Ties 

The CEPA has not only strengthened trade but also promoted investments and joint ventures. Several Indian companies have expanded operations in the UAE, while Emirati investments in India have increased, particularly in infrastructure, renewable energy, and technology sectors. 

Looking ahead, both countries are exploring avenues to further enhance economic ties, including digital trade, green energy collaboration, and startup ecosystem integration. The goal is to achieve $100 billion in bilateral trade by 2027, a target that seems increasingly attainable given the current trajectory. 

India’s Major Exports to the UAE 

India exports a diverse range of products to the UAE, contributing significantly to the flourishing trade relationship. The major exports include: 

1. Gems and Jewelry: India is a top exporter of polished diamonds, gold jewelry, and other precious stones. 
2. Pharmaceuticals: Indian medicines and healthcare products, known for quality and affordability, are in high demand. 
3. Agricultural Products: Rice, spices, fruits, and vegetables form a significant part of India’s exports to the UAE. 
4. Engineering Goods: Machinery, automotive components, and industrial equipment are key export items. 
5. Textiles and Apparel: Indian garments, fabrics, and home textiles continue to enjoy strong market presence. 
6. Electronics: Smartphones, consumer electronics, and related accessories see high export volumes. 

These exports not only strengthen economic ties but also reflect the complementary nature of India-UAE trade relations. 

UAE’s Major Exports to India 

The UAE exports a wide range of products to India, making it one of India’s top trading partners. The major exports include: 

1. Petroleum and Petrochemicals: Crude oil, refined petroleum products, and related derivatives form the backbone of UAE’s exports to India. 
2. Precious Metals: Gold, silver, and other precious metals are significant export items, catering to India’s robust jewelry market. 
3. Aluminum and Metal Products: The UAE exports high-quality aluminum and other industrial metals used across various sectors in India. 
4. Polymers and Plastics: Polymers used in manufacturing and packaging industries form a key export category. 
5. Food Products: Dates, processed foods, and other consumables are regularly exported to India. 
6. Fertilizers: UAE’s exports of fertilizers contribute to India’s agricultural productivity. 

These exports highlight the complementary trade dynamics and the strong economic ties between the two nations. 

Major Indian investments in the UAE

Renewable Energy Projects: 

• Indian companies like Reliance Industries and Adani Group have invested in renewable energy projects in the UAE, including solar power plants and green hydrogen initiatives. 

• Adani Group partnered with Masdar for a large-scale solar energy project. 

Infrastructure and Real Estate: 

• Indian real estate developers, including Sobha Realty and Lulu Group, have expanded their investments in residential and commercial projects across Dubai and Abu Dhabi. 

• Shapoorji Pallonji Group invested in UAE-based urban infrastructure projects. 

Healthcare and Pharmaceuticals: 

• Sun Pharma, Dr. Reddy’s, and Cipla have invested in manufacturing facilities and partnerships with UAE-based healthcare providers. 

• Aster DM Healthcare, originally founded by an Indian entrepreneur, continues to expand its network across the UAE. 

Technology and Startups: 

• Indian tech companies like Infosys, TCS, and Wipro have expanded their regional operations, investing in innovation centers and partnerships with UAE-based startups. 

• Indian fintech startups have partnered with UAE-based incubators in ADGM and DIFC. 

Food and Agriculture: 

• Lulu Group, founded by Indian entrepreneur Yusuff Ali, continues to invest in retail and food processing units in the UAE. 

• India’s agricultural exporters have invested in UAE-based logistics and storage facilities to streamline food exports. 

Education and Skill Development: 

• Indian institutions like Amity University and Manipal University have established campuses in Dubai, providing higher education opportunities for students across the region. 

Manufacturing and Industrial Projects: 

• Indian manufacturing companies, particularly in automotive, electronics, and textiles, have invested in UAE free zones like JAFZA, KIZAD, and Hamriyah. 

These investments not only reflect India’s economic commitment to the UAE but also strengthen bilateral ties, contributing to job creation and technological advancement in both countries. 

Major UAE investments in India

Renewable Energy: 

• ADNOC and Masdar have jointly invested in India’s renewable energy sector, focusing on solar and wind energy projects. 
• The Abu Dhabi Investment Authority (ADIA) has partnered with Indian companies to develop large-scale solar parks and green hydrogen initiatives. 

Infrastructure and Real Estate: 

• The Abu Dhabi Investment Authority (ADIA) and Dubai Holding have invested in infrastructure projects, including smart cities, highways, and industrial corridors. 
• Emaar Properties, a Dubai-based real estate giant, continues to expand its residential and commercial projects across India. 

Financial Services and Startups: 

• Mubadala Investment Company has made significant investments in India’s fintech ecosystem, including partnerships with leading Indian startups and digital payment platforms. 
• UAE-based funds are actively investing in Indian startups across sectors such as edtech, healthtech, and e-commerce. 

Healthcare and Pharmaceuticals: 

• UAE investors, including ADIA, have invested in Indian hospital chains, pharmaceutical manufacturing, and medical research facilities. 

Retail and Food Processing: 

• Lulu Group, owned by UAE-based Indian entrepreneur Yusuff Ali, continues to invest in retail outlets, hypermarkets, and food processing units across India. 

Logistics and Industrial Zones: 

• UAE entities have invested in logistics parks, warehousing, and cold storage facilities to streamline trade between India and the UAE. 

Hospitality and Tourism: 

• Emaar Hospitality and other UAE-based hotel chains have expanded their presence in major Indian cities and tourist destinations. 

Education and Skill Development: 

• UAE-based education groups, such as GEMS Education, have partnered with Indian institutions to establish schools and vocational training centers. 

Technology and Innovation: 

• The UAE has invested in India’s tech ecosystem, including artificial intelligence, blockchain, and advanced manufacturing projects. 

Petroleum and Petrochemicals: 

• ADNOC continues to invest in India’s energy sector, including refining and petrochemical projects. 

These investments reflect the deepening economic ties between the UAE and India, fostering job creation, technology transfer, and sustainable development. 

UAE’s CEPA Relationships and Global Aspirations 

UAE’s CEPA Partners

As of 2025, the UAE has signed Comprehensive Economic Partnership Agreements (CEPA) with the following countries: 

1. India – Signed in 2022, this agreement has significantly boosted bilateral trade, nearly doubling it within three years. 
2. Indonesia – The UAE-Indonesia CEPA, signed in 2022, aims to enhance trade in sectors like energy, agriculture, and digital economy. 
3. Israel – Signed in 2022, this CEPA strengthens trade ties, especially in technology, defense, and healthcare. 
4. Turkey – The UAE-Turkey CEPA, signed in 2023, focuses on boosting trade in textiles, automotive, and agriculture. 
5. South Korea – Signed in 2023, this agreement enhances trade and investment in electronics, automotive, and renewable energy. 
6. Georgia – The UAE-Georgia CEPA, signed in 2023, promotes bilateral trade and investment, particularly in agriculture and manufacturing. 
7. Colombia – Signed in 2024, this agreement focuses on agriculture, mining, and pharmaceuticals. 
8. Kenya – The UAE-Kenya CEPA, signed in 2024, aims to strengthen trade in agriculture, textiles, and technology. 
9. Cambodia – Signed in 2022, this CEPA promotes trade in textiles, agricultural products, and machinery. 
10. Pakistan – The UAE-Pakistan CEPA, signed in 2024, focuses on trade in textiles, food products, and industrial goods. 

These agreements reflect the UAE’s strategy to diversify its economy and strengthen trade relations globally.

UAE’s Ongoing CEPA Partnership Discussions

The UAE is actively negotiating Comprehensive Economic Partnership Agreements (CEPA) with several countries to expand its global trade footprint. As of 2025, the following countries are in advanced discussions with the UAE for future CEPA agreements: 

1. Thailand – Negotiations are progressing to boost trade in agriculture, electronics, and tourism-related sectors. 
2. Vietnam – The UAE is exploring a CEPA with Vietnam to enhance trade in textiles, electronics, and agricultural products. 
3. Egypt – Talks are underway to strengthen trade ties, particularly in energy, manufacturing, and food products. 
4. Ukraine – The UAE and Ukraine are discussing a CEPA focusing on agricultural exports, technology, and infrastructure. 
5. Philippines – A potential CEPA with the Philippines would cover trade in food products, healthcare, and skilled labor. 
6. Chile – Discussions are ongoing to facilitate trade in agricultural goods, mining products, and renewable energy. 
7. Mexico – The UAE is considering a CEPA with Mexico to promote trade in automotive products, electronics, and agricultural goods. 
8. Brazil – Negotiations are focusing on enhancing trade in meat, coffee, and industrial products. 
9. Bangladesh – A proposed CEPA aims to promote trade in textiles, pharmaceuticals, and agricultural products. 
10. Morocco – Talks are progressing to facilitate trade in agriculture, renewable energy, and manufacturing. 

These potential agreements highlight the UAE’s ambition to strengthen its economic ties across Asia, Africa, and Latin America, further solidifying its position as a global trade hub.