UAE-India non-oil trade stood at Dhs1.41tr in last 10 years

The significant growth in the volume of non-oil trade between the UAE and India signifies the positive progress of the Comprehensive Economic Partnership Agreement (CEPA), more than a year after it entered into force, which puts it on the right track to deliver the target of reaching $100 billion in non-oil trade annually over the next five years.

During 2020-2022, the volume of non-oil trade exchange between the UAE and India has grown by 84 per cent, from Dhs102.5 billion to Dhs188.8 billion last year, according to data from the Federal Competitiveness and Statistics Centre.

During the past ten years (2013-2022), the trade growth rate between the two countries amounted to 18.2 per cent, from Dhs159.72 billion to Dhs188.8 billion last year, to reach Dhs1.41 trillion in 10 years.

The UAE-India CEPA represented a platform for joint growth and constructive collaboration to increase the strategic importance of the two countries’ economies, stimulate the flow of mutual investments, and provide opportunities for the business communities in the two countries, which stimulates economic prosperity in both countries, as it is a partnership for sustainable growth.

In the period from May 2022 to April 2023, the first 12 months of the entry into force of the agreement, the value of bilateral non-oil trade amounted to $50.5 billion, a growth of 5.8 per cent over the same period last year, so that the partnership achieved distinguished and positive economic results that enhanced the increase in the flow of trade exchange between the two countries.

The UAE-India CEPA played a vital role in strengthening joint economic and trade relations towards further growth and prosperity, and creating a momentum of opportunities for the Emirati and Indian business communities.

The foreign trade between the two countries last year was represented in re-exports at a value of Dhs48.4 billion and non-oil exports stood at Dhs40.2 billion, while imports amounted to Dhs100.1 billion.

Increasing momentum: Abdullah Bin Touq Al Marri, Minister of Economy, stated that UAE and India have adopted a package of initiatives and joint action plans to expand the sectors of the new economy in their markets and stimulate the growth of Emirati and Indian startups so as to increase their contribution to the growth of the gross domestic product of the two countries.

‘’The UAE and the friendly Republic of India are united by strong bilateral relations and a sustainable strategic partnership, as economic relations were characterized by continuous development and common denominators in visions and strategies aimed at expanding in new economic sectors as vital drivers that support sustainable growth and competitiveness of their economy,’’ said Abdullah Bin Touq in a statement to the Emirates News Agency (WAM) on the occasion of the Prime Minister Shri Narendra Modi to the UAE on Saturday.

The minister said:’’ The Emirati-Indian economic cooperation is gaining increasing momentum in sectors of the circular economy, tourism, aviation, entrepreneurship, small and medium enterprises, renewable energy, technology, digital transformation and transportation, in light of their economic partnership and the capabilities.’’ The two countries, he added, affirmed their mutual desire to bolster cooperation in areas of common interest to stimulate the economic growth of the two countries and create new, promising opportunities for Emirati and Indian business communities.‘’We are determined to advance our economic partnership with our partners in the Indian government and to continue joint efforts, especially since India is one of the five largest markets exporting tourism to the country, ‘’ he said, adding that non-oil foreign trade between the two countries reached Dhs188.8 billion in 2022, a growth of 15% compared to 2021.

Last Month, Dr Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, has held a bilateral meeting with Piyush Goyal, India’s Minister of Commerce and Industry in New Delhi, India, to celebrate the first year of the Comprehensive Economic Partnership Agreement (CEPA) between the two nations and review the newly released trade data.

Initial figures from the UAE Ministry of Economy indicate that from May 2022 to April 2023, the first 12 months of the CEPA, bilateral non-oil trade reached a value of $50.5 billion, a 5.8 percent increase on the same period from the previous year. The two ministers commended the effectiveness of the CEPA in promoting trade and investment, and restated their shared commitment to building a mutually beneficial partnership that delivers long-term prosperity.

They then attended the conclusion of the inaugural UAE-India Joint Committee, which was convened on the first anniversary of the agreement to assess its impact to date, share data and experiences, review implementation issues, refine tariffs and quotas and recommend amendments. The ministers witnessed the signing of the minutes of the meeting by the chief negotiators, which will help the development of the CEPA over the next two years.

Dr Thani Al Zeyoudi heralded the progress of bilateral relations over the last year. “Since the implementation of the Comprehensive Economic Partnership Agreement between the UAE and India, we have witnessed real momentum in bilateral non-oil trade, which is keeping us on course to reach our target of $100 billion by 2030. But this was always more than just a trade deal, and the increased investment flows, joint ventures and deeper market penetration underline the real potential of the agreement.”