The UAE and India have reinforced their strategic economic alliance with a promising vision for bilateral trade, despite global challenges such as shifting supply chains and US trade tariffs creating uncertainty for emerging markets.
From Mumbai, where UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi met Indian counterpart Piyush Goyal and top business leaders, the message was clear: The Comprehensive Economic Partnership Agreement (Cepa) has become a robust growth engine capable of weathering external disruptions.
Non-oil trade between the UAE and India reached $37.6 billion in the first half of 2025, a 33.9% increase compared to the same period last year, propelling the two nations toward exceeding the ambitious $100 billion annual trade target set when Cepa was implemented in 2022. “This visit highlights our shared values and economic objectives, reflecting the untapped potential,” Dr. Al Zeyoudi said in Mumbai. “Cepa has been pivotal in accelerating trade and investment by enhancing market access, boosting industrial productivity, and facilitating cooperation in key sectors.”
The timing of this renewed commitment is crucial. The global oil market remains sluggish, Opec+ production increases pressure prices, and US President Donald Trump’s decision to double tariffs on Indian imports to 50% adds another layer of uncertainty. Yet, both Indian and UAE officials express confidence that their partnership can counter external risks. “In a changing world, our ties with India remain unshakable,” Dr. Al Zeyoudi emphasized. “Together, we are creating resilient supply chains and limitless opportunities for our people.”
India’s rapid growth trajectory supports this optimism. Commerce and Industry Minister Piyush Goyal highlighted that India remains the fastest-growing major economy, expanding at 7.8% in the most recent quarter. He reiterated India’s target of reaching a $5 trillion economy by 2027 and an extraordinary $32–35 trillion by 2047. The UAE, as a global logistics and investment hub, increasingly serves as a launchpad for Indian goods and services into Africa, the Middle East, and Europe.
A flagship project reinforcing this role is Bharat Mart, a 2.7 million square foot complex being developed in Dubai’s Jebel Ali Free Zone by DP World. This facility, designed as a one-stop hub for Indian exporters, will allow manufacturers to showcase products and reach global markets more efficiently. The initiative underscores how infrastructure and trade facilitation are becoming as essential as tariff reductions in deepening bilateral ties.
The focus sectors for expansion reflect new global commerce realities. Both sides prioritize food security, renewable energy, pharmaceuticals, healthcare innovation, artificial intelligence, and fintech. Al Zeyoudi and Goyal, joined by Food Processing Industries Minister Chirag Paswan, also met Indian stakeholders in agriculture and food processing, underscoring the central role of resilient value chains. For the UAE, securing long-term food supplies is a strategic priority; for India, leveraging the UAE’s capital and logistics networks offers a chance to globalize its agribusiness sector.
Private sector leaders voiced equal enthusiasm. R Mukundan, President-Designate of the Confederation of Indian Industry (CII), stated that CEPA is not just a policy framework but “a living model of how quickly two nations can act with trust and ambition.” With trade accelerating faster than projected, industry players believe the $100 billion milestone could be achieved sooner than expected. Humaid Mohammed bin Salem, Secretary General of the UAE Chambers, described the partnership as “future-focused, built on advanced technologies and sustainable growth.”
Analysts note that the UAE–India relationship is especially critical at a time when US protectionist policies could redirect global trade flows. India has resisted pressure from Washington to reduce Russian oil imports, instead strengthening energy and financial ties with Gulf partners. The UAE, balancing its role as both an Opec member and a global investment hub, offers India a stable alternative platform for capital inflows and re-exports. “This corridor is now about more than bilateral trade — it is about creating insulation from geopolitical shocks,” said a senior economist at a Dubai-based investment bank.
The resilience of this partnership is also evident in investment flows. UAE companies are deepening their stakes in India’s renewable energy, logistics, and technology sectors, while Indian firms are expanding their presence in the UAE’s free zones and real estate markets. Bharat Mart exemplifies this two-way approach — channeling Indian goods outward while anchoring them within the UAE’s global trading ecosystem.
As the Cepa agreement marks its third anniversary, both sides see it as a springboard rather than a finished product. New cooperation areas are being explored, particularly in green hydrogen, digital services, and circular economy models. Leaders in Mumbai emphasized that regulatory simplification, ease of doing business, and tax reforms will be crucial in sustaining momentum.
Trade experts noted that the UAE–India trade corridor has become one of the fastest-growing globally, a rare bright spot amid tariffs, protectionism, and sluggish global growth. “With bold political will, complementary strengths, and strong private sector participation, both nations are betting that their partnership will not only hit the $100 billion trade mark but set the foundation for regional integration and global growth in the decades ahead.”
