UAE Signals Additional $25 Billion Investment in India as Bilateral Trade Target Rises to $200 Billion

The UAE has indicated plans for another $25 billion investment in India as both countries expand cooperation in trade, energy, ports, technology and logistics.

UAE Signals Additional $25 Billion Investment in India

The United Arab Emirates has indicated its intention to invest an additional $25 billion in India, according to Commerce and Industry Minister Piyush Goyal. The announcement came after the 14th India-UAE High-Level Joint Task Force on Investments meeting in Mumbai.

The UAE has already invested around $25 billion in India and is targeting total investments of up to $100 billion over the longer term. The latest investment plans are expected to cover several strategic sectors, including infrastructure, energy, technology and logistics.

India-UAE Trade Target Set at $200 Billion

India and the UAE are working towards doubling their bilateral trade to $200 billion by 2032. Bilateral trade reached $101.25 billion in FY 2025-26, while non-oil trade stood at $76.2 billion in 2025.

The growth follows the implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in May 2022. The agreement has helped strengthen market access and commercial ties between the two economies.

UAE Investment to Cover Multiple Sectors

According to Goyal, potential UAE investments and cooperation will extend beyond traditional sectors. Areas under consideration include ports, shipbuilding, space technology, logistics, startups, financial markets, artificial intelligence and emerging technologies.

The two countries have also identified several areas within the shipping sector for deeper collaboration. These include ship ownership, port development, shipbuilding and related maritime activities. A dedicated working group is expected to take forward this cooperation.

Focus on Energy Security

Energy cooperation is emerging as another important component of the India-UAE economic relationship.

The two sides are examining opportunities involving strategic petroleum reserves, LNG and LPG supplies and subsea gas pipelines. These initiatives could support India's efforts to strengthen energy security and develop more resilient supply chains.

The discussions come amid continuing geopolitical tensions in West Asia that have affected energy markets and international supply chains.

Greater Use of Rupee and Dirham in Trade

India and the UAE are also seeking to expand the use of their national currencies for bilateral trade settlements.

Under the arrangement, Indian exporters can receive payments in rupees, while imports from the UAE can be settled in dirhams. The two countries have also agreed to advance cooperation involving payment systems, financial messaging infrastructure and central-bank digital currencies.

Greater use of local currencies is intended to make cross-border transactions more efficient and reduce dependence on third-country currencies for bilateral commerce.

Ports and Shipping Cooperation

India is looking to expand its port infrastructure as economic activity and trade volumes increase. Goyal said UAE investors could play an important role in developing new ports and expanding existing facilities.

Potential cooperation also includes shipbuilding, ship repair and container manufacturing. Both sides plan to establish a structured mechanism to advance these maritime projects.

Cooperation in Technology and Emerging Industries

The latest India-UAE discussions also covered space technology, food security, agricultural innovation, logistics, fintech, artificial intelligence and emerging technologies.

Both countries are exploring ways to deepen technology partnerships while creating opportunities for businesses, startups and investors. Cooperation in food processing and agricultural exports is also expected to support market access for Indian producers.

India-UAE Economic Partnership Continues to Expand

The India-UAE High-Level Joint Task Force on Investments was established in 2013 to promote bilateral investment and address issues faced by investors from both countries. The latest meeting reviewed existing investment projects and explored new opportunities.

The UAE is currently India's seventh-largest source of foreign direct investment, according to Goyal. Abu Dhabi Investment Authority, which co-chaired the latest meeting through its managing director Sheikh Hamed bin Zayed Al Nahyan, is among the world's major sovereign wealth funds.

Bilateral Trade Recovers Amid Regional Tensions

Goyal said India-UAE trade is moving back towards levels seen before the recent West Asia conflict. He noted that geopolitical disruptions had affected commerce but said both countries were working to restore and expand trade.

With bilateral trade already above $100 billion, the two countries are now targeting $200 billion by 2032. The proposed investment pipeline and expanding cooperation across energy, infrastructure, technology and logistics are expected to support that objective.

Conclusion

The UAE's proposed additional $25 billion investment marks another step in expanding India-UAE economic ties. With cooperation spanning energy, ports, shipping, technology and local-currency trade, both countries are also working towards their $200 billion bilateral trade target by 2032.