India and the UAE have seen a remarkable rise in **non‑oil bilateral trade**, climbing to $65 billion in 2024, and aiming for $100 billion by 2030 thanks to CEPA and strategic investment. Discover how this roadmap has accelerated trade growth.
UAE–India Non‑Oil Trade Hits $65 B in 2024
Following the Comprehensive Economic Partnership Agreement (CEPA) signed in February 2022 and implemented in May, **non‑oil trade** surged to around $65 billion in 2024, reflecting nearly 20 % year‑on‑year growth and more than double the 2020 level of $27.9 billion. It underscores the growing strength of the economic partnership.
CEPA: Key Driver of Trade Surge
The CEPA removed barriers and boosted trade across sectors like machinery, precious metals, agritech and steel. Improvements in logistics and use of **rupee‑dirham settlement** have expanded commerce. Since May 2022, the partnership council reports nearly 15 % growth in trade volume annually. CEPA helped lift bilateral trade to about $100 billion in FY 2025 overall.
From $65 B Goal to $100 B by 2030
Both sides set a joint target to push **non‑oil trade** to $100 billion by 2030—almost double the prior baseline figure of $48 billion. Given the current growth rate, they are on track to exceed the target well before the deadline.
Growth Momentum and Investment Trends
Rapid expansion in sectors and rising direct investments support trade growth. Key points include:
- UAE direct investments in India reached nearly **$17 billion** by late 2023, making UAE seventh largest global investor in India.
- Indian firms invested about **$8 billion** in the UAE, positioning India as the second largest investor there.
- Total mutual cross‑investments stood at **$25 billion**, with 70 % coming from the UAE.
Strategies to Achieve $100 B Milestone
Broadening sectors and deeper economic linkages are key:
- Expanding into **AI, digital technologies, logistics and financial services** under CEPA expansion talks.
- Leveraging the **India–Middle East–Europe Economic Corridor (IMEC)** to strengthen supply chains and reduce trade transit time.
- Fostering partnerships in **renewables, fintech, defence, agritech**, data‑centres and green hydrogen.
Sector Diversification Is Central
CEPA expansion aims to open new high‑growth arenas, moving beyond traditional goods like gems and metals into **tech‑driven, high‑value sectors**.
Connectivity Boost via IMEC
IMEC enhances trade logistics through rail, ports, energy corridors and fibre optics—facilitating seamless connectivity between India, UAE and Europe.
Long‑Term Investment Collaboration
With sustained capital flow and joint ventures in infrastructure, defence and energy, trade volume is set for continuous growth.
Strengthening Trade Settlement Systems
Adopting **local currency settlement** (rupee-dirham) reduces dependence on the dollar, improving transaction efficiency and cost.
A Shared Strategic Vision
Both governments share a commitment to deepen ties and exceed bilateral trade targets through policy alignment and active business councils.
Early Success Indicates Accelerated Timeline
Given trade already surpassed $100 billion in FY 2025 overall, the $100 billion **non‑oil trade goal by 2030** may be reached before schedule.
Tags
UAE India trade, CEPA growth, non‑oil trade, UAE India investment, IMEC corridor, trade expansion 2030