India-UAE Trade Surpasses $100 Billion Milestone Under CEPA, Says Piyush Goyal

India’s economic ties with the United Arab Emirates have reached a significant milestone, with bilateral trade crossing $100 billion under the Comprehensive Economic Partnership Agreement (CEPA), according to Piyush Goyal.

CEPA Drives Strong Growth in Bilateral Trade

The Comprehensive Economic Partnership Agreement (CEPA), signed between India and the United Arab Emirates in May 2022, has emerged as a key driver of trade expansion between the two nations. Since its implementation, the agreement has significantly boosted both merchandise and services trade, strengthening economic cooperation.

Commerce and Industry Minister Piyush Goyal highlighted that the trade relationship has not only expanded in scale but also diversified across sectors. The agreement has facilitated smoother market access, reduced trade barriers, and encouraged business collaborations.

As a result, total bilateral trade between India and the UAE has crossed the $100 billion mark, underscoring the success of the trade pact.

Trade Figures Reflect Steady Growth

According to official data, bilateral trade between the two countries reached $101.25 billion in the financial year 2025–26. This marks a slight increase from $100.03 billion recorded in 2024–25.

While the growth appears moderate in percentage terms, maintaining trade above the $100 billion threshold reflects sustained economic engagement and resilience in global trade conditions.

The growth is particularly notable given the broader global economic uncertainties, indicating the strength of India-UAE trade ties.

Merchandise and Services Trade Expand

A major contributor to this milestone has been the strong performance of merchandise trade. Key sectors such as gems and jewellery, engineering goods, electronics, and agriculture have played a significant role in driving exports and imports.

In addition to merchandise trade, services trade between the two countries has also witnessed steady growth. This includes sectors such as finance, technology, logistics, and professional services.

The expansion of services trade has opened new avenues for collaboration, enabling businesses from both countries to explore high-value opportunities and diversify their offerings.

Export and Import Trends

India’s exports to the UAE grew by approximately 2 percent in 2025–26, reaching $37.36 billion. This growth reflects continued demand for Indian goods in the UAE market, supported by favorable trade policies under CEPA.

On the other hand, imports from the UAE increased by 0.77 percent to $63.89 billion. The higher import value resulted in a trade deficit of $26.53 billion for India.

Despite the trade deficit, the overall increase in trade volume indicates a healthy exchange of goods and services, benefiting both economies.

Sector-Wise Growth Highlights

The India-UAE trade relationship has seen robust expansion across several sectors:

Gems and Jewellery

This sector remains one of the largest contributors to bilateral trade, driven by strong demand and established supply chains.

Engineering Goods

Engineering exports have gained momentum, reflecting India’s growing manufacturing capabilities and technological expertise.

Electronics

The electronics sector has emerged as a key growth area, supported by increasing demand and improved production capacity.

Agriculture

Agricultural exports have also expanded, contributing to food security and strengthening trade ties.

These sectors highlight the diversified nature of India-UAE trade, reducing dependence on a single industry.

UAE as a Strategic Gateway

One of the most significant advantages of the CEPA agreement is the UAE’s role as a strategic gateway to global markets. According to Piyush Goyal, the UAE provides access to regions such as Africa, the Gulf Cooperation Council (GCC), the Middle East, the Commonwealth of Independent States (CIS), and parts of Europe.

This strategic positioning allows Indian businesses to expand their global footprint by leveraging the UAE’s advanced logistics infrastructure and trade networks.

For exporters, this means greater market reach and the ability to tap into emerging economies.

Foreign Direct Investment Trends

Foreign direct investment (FDI) from the UAE into India has also played a crucial role in strengthening economic ties. During April–December 2025–26, FDI inflows from the UAE stood at $2.45 billion.

However, this figure is lower compared to $4.34 billion recorded in 2024–25, indicating some fluctuation in investment trends.

Despite this decline, the UAE remains a significant investor in India, contributing to sectors such as infrastructure, real estate, renewable energy, and technology.

Policy Support and Economic Cooperation

The success of the CEPA agreement can be attributed to strong policy support from both governments. The agreement focuses on reducing tariffs, simplifying customs procedures, and promoting ease of doing business.

It also encourages collaboration in areas such as innovation, digital trade, and sustainable development.

The Indian government’s proactive approach, combined with the UAE’s strategic vision, has created a favorable environment for trade and investment.

Challenges and Opportunities Ahead

While the India-UAE trade relationship has achieved significant milestones, there are still challenges to address. These include managing the trade deficit, ensuring balanced growth, and adapting to changing global trade dynamics.

At the same time, there are numerous opportunities for further expansion. Emerging sectors such as renewable energy, digital technology, and advanced manufacturing offer potential for future growth.

Strengthening supply chains, enhancing logistics, and fostering innovation will be key to sustaining momentum.

Conclusion

The crossing of the $100 billion trade milestone under the CEPA agreement marks a significant achievement for India and the UAE. It reflects the strength of their economic partnership and the effectiveness of policy initiatives aimed at promoting trade and investment.

As both countries continue to deepen their collaboration, the India-UAE relationship is poised to play an increasingly important role in the global economic landscape.

With sustained efforts and strategic initiatives, the partnership is expected to achieve even greater milestones in the years to come.