Bilateral Goods Trade Between India And UAE Doubles As CEPA Completes Three Years

(MENAFN- Live Mint) New Delhi: The India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) has proven to be a significant driver of trade growth between the two countries as it completes three years since signing on Tuesday. Bilateral merchandise trade between India and the UAE has nearly doubled in this period, rising from $43.3 billion in FY21 to $83.7 billion in FY24, according to a statement from the commerce ministry.

Signed during a virtual summit between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the agreement entered into force on 1 May 2022.

In its three years, the India-UAE CEPA has significantly strengthened economic ties, driven robust trade growth, and created new opportunities for businesses in both countries.

Also read | Start-ups, renewable energy sector investments surge between India-UAE post CEPA

In the first nine months of FY25, trade has already reached $71.8 billion. This surge has been driven by CEPA's focus on diversifying the trade basket, with non-oil trade reaching $57.8 billion in FY24, accounting for more than half of the total trade. Both countries are on track to hit the target of $100 billion in non-oil trade by 2030, as per the commerce ministry.

Substantial growth

India's exports to the UAE have seen substantial growth under the agreement, particularly in non-oil sectors. Non-oil exports reached $27.4 billion in FY 2023-24, marking an impressive 25.6% annual growth since the agreement came into effect, as per the ministry. Key sectors contributing to this growth include electrical machinery, high-tech products, and organic chemicals. Additionally, smartphones have emerged as a major export item, with exports valued at $2.57 billion in FY24.

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