New Delhi: The trade relationship between India and the United Arab Emirates (UAE) is poised to exceed the $100 billion mark well in advance of the 2030 target, highlighted by a significant 12.7 percent increase in trade volume, as reported on Tuesday.
The UAE continues to be India's third-largest trading partner and the second-largest market for exports (for the fiscal year 2022-23).
A report by Primus Partners indicates that bilateral trade reached $85 billion in the fiscal year 2022-23 and is projected to surpass the $100 billion threshold well before the anticipated deadline.
The economic ties between India and the UAE have been strengthened by the recent visit of Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi, to India. Following this visit, five Memorandums of Understanding (MoUs) were signed.
The economic relationship between India and the UAE is on the cusp of entering a new phase, propelled by structural reforms such as the 2022 Comprehensive Economic Partnership Agreement (CEPA), which has dismantled longstanding barriers.
"This underscores the fact that this trade growth is not only bolstering existing sectors like gems, jewelry, and information technology but is also creating opportunities for emerging industries such as green energy and food security," stated Nilaya Varma, CEO and Co-founder of Primus Partners.
Both nations are at the forefront of key collaborative initiatives, including the India-Middle East-Europe Economic Corridor (IMEEC) and the India-Israel-UAE-US (I2U2) coalition.
The economic relationship between India and the UAE is poised for further solidification through measures such as the implementation of a master dashboard to oversee critical infrastructure projects; the establishment of a bilateral e-commerce marketplace for goods and services, potentially leveraging India's Open Network for Digital Commerce (ONDC) model; and the creation of an online digital repository to highlight investable projects in strategic sectors.
Nader Haffar, Director of Primus Partners UAE, noted that the bilateral relationship has matured into a multifaceted partnership that is reshaping the landscape of regional and global trade.
The collaboration between two of the world's most rapidly expanding economies is generating fresh opportunities, nurturing innovation, and establishing a robust foundation for sustained prosperity. This development could potentially serve as a benchmark for emerging market partnerships globally.
The traditional sector of gems and jewelry, which has long been a cornerstone of trade, has witnessed a surge in activity as a result of the Comprehensive Economic Partnership Agreement (CEPA). Within this sector, the trade of metals, stones, gems, and jewelry stands as a significant export for India to the United Arab Emirates.
Furthermore, India's agricultural exports to the United Arab Emirates, encompassing cereals, sugar, fruits, vegetables, and tea, play a crucial role in the trade portfolio. These exports are instrumental in supporting the United Arab Emirates' objectives for food security.
