Bilateral trade between India and UAE touches 50.5 billion US dollars

The bilateral non-oil trade between India and United Arab Emirates has reached 50.5 billion US dollars during the first 12 months of signing the Comprehensive Economic Partnership agreement representing a growth of 5.8 per cent compared to the corresponding period a year earlier.

The two countries are fast moving towards the target of 100 billion US dollars non-oil trade by 2030.

A Memorandum of Understanding for the establishment of a framework to promote the use of local currencies (INR-AED) for cross-border transactions was signed by Governors of the respective Central Banks of India and the UAE in July 2023. Developing the Local Currency Settlement System between the two countries to settle bilateral trade reflects mutual confidence and underlines the robustness of the economies in both countries.

The India-UAE Business Summit was held on January 10th January at Ahmedabad to strengthen bilateral ties between the two countries as part of the Vibrant Gujarat Global Summit 2024.UAE’s President Sheikh Mohamed bin Zayed Al Nahyan is the chief guest at theVibrant Gujarat Global Summit 2024.

Commerce Minister PiyushGoyal,  ceremonially launched the UAE – India CEPA Council (UICC) website as part of the inaugural session.   The sessionincluded a presentation on the Bharat Mart which is a proposed warehousing facility by India in the UAEto support Indian exporters.

India-UAE trade rose to 85 billion US dollars in 2022, making the UAE India’s third-largest trading partner India’s second-largest export destination for UAE during the year 2022-23. In February 2022, India became the Firstcountry with which the UAE signed a Comprehensive Economic Partnership Agreement (CEPA).Bilateral trade has increased by approximately 15 per cent since the entry into force of the CEPA on May 1, 2022.

The CEPA was a landmark agreement designed to spark a new era of cooperation between two nations and strengthening the long-standing cultural, political and economic ties. It has helped reduce tariffs on more than 80 per cent of product lines, eliminate barriers to trade and create new pathways for investment and joint ventures.