UAE-India trade continues to thrive despite international slowdown


(MENAFN) India's trade with the UAE has continued to thrive despite a global trade slowdown, with experts foreseeing a surge in trade volumes between the two nations.

In 2023, non-oil trade between the Emirates and India witnessed a notable growth of 3.9 percent, constituting more than 7.6 percent of the UAE’s total trade, according to official data.

In contrast, the United Nations trade organization Unctad projected in December that global trade was poised to decline by 5 percent in 2023. Additionally, they cautioned about a “still uncertain but overall pessimistic” outlook for 2024.

It stated that the decrease was caused by “diminished demand in developed nations and] underperformance in East Asia economies”.

In spite of analysts' positive sentiments regarding the prospects of UAE-India trade, underpinned by the ongoing efforts to strengthen bilateral relations and India's anticipated position as the world's fastest-growing major economy this year, they caution against potential risks. Among the concerns are the possibility of escalations in conflicts in Gaza and Ukraine, along with attacks on ships in the Red Sea by Houthi fighters. These factors are perceived as potential risks that could impact the trajectory of trade between the two nations.

“The outlook for UAE-India trade is highly favourable, with multiple factors poised to drive continued expansion in the coming years”, Monica Sood, chairwoman of India's National Unity and Security Council, emphasized these points.

Ms. Sood highlighted the foundation for last year's growth in non-oil trade between the UAE and India and the potential for further expansion. She pointed to the longstanding partnership between the two nations, which includes recent developments such as the Comprehensive Economic Partnership Agreement (Cepa) and the establishment of a mechanism for settling trade transactions in local currencies. This underscores the increasing depth and breadth of the bilateral relationship between the UAE and India.

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