India-UAE Trade Reached USD 83.7 billion in FY24 After Signing of CEPA

February 18, 2025, saw the 3rd anniversary of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). Signed on February 18, 2022, during a virtual summit between India’s Prime Minister Shri Narendra Modi and the UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, the agreement came into force on 1st May 2022.

The bilateral merchandise trade has experienced remarkable growth since the signing of the CEPA. The trade went double from USD 43.3 billion in FY 2020-21 to USD 83.7 billion in FY 2023-24. In the current fiscal year (April-December 2024), trade amounted to USD 71.8 billion.

CEPA has effectively diversified trade, with non-oil trade reaching USD 57.8 billion in FY 2023-24, accounting for more than half of the total bilateral trade. This success marks the target of achieving USD 100 billion in non-oil trade by 2030.

India’s Export Performance

India’s non-oil exports to the UAE reached USD 27.4 billion in FY 2023-24, reflecting an average growth rate of 25.6% since the agreement came into effect. Key sectors include refined crude oil products, gems & jewellery, electrical machinery, high-tech goods like boilers, and chemicals. Smartphones have also emerged as a major export, with shipments valued at USD 2.57 billion during FY 2023-24.

Collaborative Efforts to Address Export Challenges

Both governments have worked diligently to resolve challenges faced by exporters through regular high-level meetings and technical discussions. The Joint Committee, established to monitor the implementation of CEPA, has met twice, with the most recent meeting held in October 2024. The Trade in Goods Committee has also convened multiple times to tackle bilateral trade issues.

Establishment of Additional Sub-Committees

In a spirit of cooperation, both sides have operationalized several Sub-Committees to address matters related to trade in services, rules of origin, customs procedures, and trade facilitation.

The inauguration of Bharat Mart by India’s Prime Minister in Dubai serves as a One Stop Shop for Indian manufacturers to present their products to global markets, boosting India’s exports and strengthening bilateral trade.

Conclusion

The India-UAE CEPA has ushered in a new era of economic cooperation and diplomacy, empowering MSMEs, creating job opportunities, and opening up new business prospects. Both nations are committed to enhancing their economic partnership and leveraging CEPA to further expand trade and opportunities, reaching new heights.

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