India and the United Arab Emirates (UAE) are forging a more robust economic relationship as they aim to more than double their non-oil bilateral trade to USD 100 billion by 2030. This ambitious target was announced on Monday, following the first meeting of the Joint Committee of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The plan is to lift trade from the current USD 48 billion to achieve a sizable increase over the next seven years.
“We have mutually agreed that we should now become more ambitious,” said Indian Minister of Commerce and Industry, Piyush Goyal. The meeting also marked the first anniversary of the India-UAE CEPA, a strategic agreement designed to optimise the economic benefits and build stronger economic linkages between the two countries.
The meeting set the groundwork for enhanced economic cooperation, with the agreement to establish the UAE-India Comprehensive Economic Partnership Agreement (CEPA) Council. The council will act as a business-to-business collaboration mechanism, focusing on Micro, Small and Medium Enterprises (MSMEs) and start-ups. It aims to facilitate the smooth implementation of CEPA, create awareness, build partnerships, and organise business events in both countries.
Part of the meeting’s comprehensive discussions was the creation of a new sub-committee dedicated to trade in services. Both countries will exchange preferential trade data quarterly to monitor the CEPA effectively. The ministers also addressed potential issues that could hinder the CEPA implementation and its usage by businesses on both sides, underlining their commitment to maintaining the momentum of bilateral trade growth, which has already seen a rise to an all-time high of USD 84.84 billion during FY 2022-23.
Further enhancing their economic ties, Goyal shed light on initiatives like the establishment of virtual trade corridors, potential offices of the Abu Dhabi Investment Authority in GIFT city (Gujarat), a UPI partnership, and the possible development of a direct Rupee-Dirham trade system.
Expressing the UAE government’s commitment, Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, confirmed their keenness to strengthen India-UAE bilateral relations in all areas of mutual importance. He assured that the UAE would continue to be a reliable supplier of oil to India and promote their businesses to source more refined products from India.
This forward-looking engagement underscores the strategic importance both countries place on their bilateral ties, with goals that extend beyond oil trade. With a focus on sectors such as textiles, footwear, automobiles, gems and jewelry, energy, emerging technologies, skills and education, food, healthcare, defense, and startups, the two nations are poised to transform their economic landscape over the next decade.
