Indian exporters today face both unprecedented challenges and powerful new opportunities. With major trading partners such as the United States imposing steep tariff barriers, the Indian government has stepped up to provide relief through duty cuts, incentives, and export promotion schemes. At the same time, the UAE has emerged as a critical platform for Indian businesses to sustain competitiveness, access new markets, and build resilient global supply chains.
Read more on India’s Export Incentives.
Government Support for Indian Exporters
The Government of India has rolled out a series of targeted measures designed to strengthen exporters’ hands in navigating the turbulent global trade environment:
- Duty-Free Cotton Imports: To support textile and garment exporters, duty exemptions on cotton imports—worth about 11% savings—have been extended until December 2025, helping lower input costs and preserve margins.
- Export Promotion Mission (EPM): A ₹25,000 crore package spread across six years under the Niryat Protsahan and Niryat Disha schemes is aimed at increasing competitiveness, expanding market access, and diversifying export destinations.
- Reinstated RoDTEP Benefits: The Remission of Duties and Taxes on Exported Products scheme has been reinstated, ensuring exporters in sectors such as textiles, pharmaceuticals, chemicals, and agriculture receive critical tax and duty refunds to offset hidden costs.
- Jewellery Sector Relief: Duty drawback rates on gold jewellery have been raised, providing much-needed relief to exporters in a sector heavily affected by tariff barriers.
These measures reflect India’s clear commitment to cushioning its exporters against external shocks while encouraging global growth.
The UAE: A Strategic Gateway for Indian Businesses
Even as India strengthens its support, businesses must look outward to secure long-term resilience. The UAE stands out as a partner of choice for Indian firms for several reasons:
- Tariff Advantage: Goods manufactured or substantially transformed in the UAE can access the U.S. and other markets at much lower tariff rates, compared to direct exports from India.
- Strategic Infrastructure: World-class ports, free zones, and logistics hubs—from Jebel Ali to Khalifa Port—enable seamless access to Europe, Africa, and the Americas.
- Trade Agreements: The India–UAE CEPA (Comprehensive Economic Partnership Agreement) already offers preferential access across multiple sectors, and ongoing UAE–Mercosur talks signal even wider opportunities.
- Investment Ecosystem: Free zones like Masdar City, JAFZA, and ADGM provide sector-specific clusters, full foreign ownership options, and tax benefits that allow Indian firms to integrate smoothly into the UAE’s business ecosystem.
- Cultural and Business Ties: With a large Indian diaspora and longstanding trade relationships, the UAE offers a familiar and supportive environment for Indian enterprises to establish and grow.
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Turn Tariff Challenges into Trade Triumphs
For Indian businesses, the convergence of government-backed incentives at home and the UAE’s enabling business environment abroad presents a unique moment to act.
- Textile exporters can reduce input costs in India while tapping UAE free zones to reach global buyers more competitively.
- Jewellery companies can combine higher drawback support at home with UAE’s proximity to gold markets and re-export advantages.
- Agribusinesses and food processors can use India’s subsidies to scale production, while leveraging UAE logistics to penetrate Africa and Europe.
The path forward lies not only in adapting to new global realities but also in building strategic cross-border partnerships. The UAE, with its trade facilitation role, is positioned to be the launchpad for Indian businesses seeking sustainable global expansion.
Indian exporters today are backed by a strong policy environment at home and unprecedented opportunities abroad. The UAE is not just a gateway but a partner in growth, offering Indian businesses the chance to transform tariff challenges into trade triumphs. Those who act decisively will be best placed to lead in the next chapter of global commerce.
