India and the United Arab Emirates (UAE) have announced an ambitious plan to double their bilateral trade in non-oil and non-precious metal sectors to $100 billion by 2028. The announcement was made during the 13th India–UAE High-Level Joint Task Force on Investments held in Abu Dhabi, co-chaired by Commerce and Industry Minister Piyush Goyal and Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority.
The new target builds on the success of the Comprehensive Economic Partnership Agreement (CEPA), which helped both nations achieve $100 billion in overall bilateral trade within three years of signing. The renewed focus now shifts to diversifying trade beyond traditional sectors like crude oil and gold, with emphasis on textiles, food processing, pharmaceuticals, leather goods, and fisheries.
Strategic Focus Areas for India-UAE Trade Expansion
| Sector | Key Opportunities |
|---|---|
| Textiles & Apparel | Home décor, garments, technical textiles |
| Food Processing | Packaged foods, spices, ready-to-eat meals |
| Pharmaceuticals | Generics, APIs, biotech collaborations |
| Leather & Footwear | Finished leather, fashion accessories |
| Fisheries | Marine exports, aquaculture technology |
Minister Goyal highlighted that the two countries are not competitors but collaborators, aiming to support each other’s growth through targeted sectoral partnerships.
Current Trade Snapshot: Non-Oil, Non-Precious Metal Segment
| Trade Category | Estimated Value (2024–25) |
|---|---|
| Non-Oil, Non-Precious Trade | $50–55 billion |
| Overall Bilateral Trade | $100 billion |
| Target by 2028 | $100 billion (non-oil) |
The current trade in non-oil, non-precious metals stands at approximately $50–55 billion. The new goal effectively doubles this figure, signaling a strategic pivot in India-UAE economic relations.
Key Announcements from the Joint Task Force Meeting
| Initiative | Description |
|---|---|
| Third-Country Infrastructure Projects | Joint investments in Africa and GCC nations |
| Local Currency Trade | Expansion of INR-AED transactions to reduce costs |
| Maritime & Aerospace Collaboration | New partnerships in defense and space sectors |
| Business Delegation Participation | Over 70 Indian industry leaders attended the summit |
The meeting was attended by one of the largest Indian business delegations ever to visit the UAE, including representatives from CII, FICCI, and ASSOCHAM.
India-UAE Investment Landscape
| Indicator | Value |
|---|---|
| UAE’s Rank as Investor in India | 5th largest |
| UAE Investment in India (2024) | $18 billion |
| Indian Investment in UAE (2024) | $12 billion |
| CEPA Implementation Timeline | Since May 2022 |
The CEPA has significantly reduced tariffs and streamlined customs procedures, making it easier for businesses to operate across borders. The new trade target builds on this momentum.
Trade in Local Currencies: A Game-Changer
| Benefit | Impact |
|---|---|
| Reduced Transaction Costs | Lower forex conversion fees |
| Faster Settlements | Improved trade efficiency |
| Enhanced Bilateral Trust | Strengthened financial ties |
| Support for MSMEs | Easier access to cross-border trade |
Minister Goyal emphasized that trade in local currencies is steadily increasing, making cross-border operations more seamless and cost-effective.
Third-Country Investment Strategy
India and the UAE have agreed to jointly invest in infrastructure projects in third-country regions, particularly in Africa and the Gulf Cooperation Council (GCC). This strategy leverages the UAE’s financial strength and India’s skilled workforce to create sustainable development models abroad.
| Region | Focus Area |
|---|---|
| Africa | Roads, ports, energy |
| GCC Nations | Smart cities, logistics hubs |
| Southeast Asia | Renewable energy, digital infrastructure |
This move positions both nations as global development partners, expanding their influence beyond bilateral trade.
Industry Reactions and Outlook
| Organization | Response |
|---|---|
| Confederation of Indian Industry (CII) | Welcomed the sectoral focus and investment roadmap |
| Federation of Indian Chambers of Commerce & Industry (FICCI) | Called for faster implementation of CEPA benefits |
| Associated Chambers of Commerce and Industry of India (ASSOCHAM) | Urged support for MSMEs in export diversification |
| UAE Business Council | Expressed confidence in India’s manufacturing potential |
Industry leaders have praised the renewed commitment to expanding trade and investment, especially in high-growth sectors.
Challenges and Considerations
| Challenge | Mitigation Strategy |
|---|---|
| Regulatory Alignment | Harmonize standards and certifications |
| Logistics and Infrastructure | Invest in port connectivity and warehousing |
| MSME Participation | Provide export incentives and training |
| Currency Volatility | Expand local currency trade mechanisms |
Both governments are expected to announce new policy frameworks to address these challenges and ensure smooth execution of the trade expansion plan.
Conclusion: A New Era in India-UAE Economic Partnership
The decision to target $100 billion in non-oil, non-precious metal trade marks a significant shift in India-UAE relations—from transactional to transformational. By focusing on diversified sectors and third-country collaborations, both nations are positioning themselves as global trade leaders with shared values and complementary strengths.
As the roadmap unfolds over the next three years, the partnership is expected to unlock new opportunities for businesses, strengthen regional influence, and set a benchmark for strategic bilateral cooperation in the 21st century.
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Disclaimer: This article is based on publicly available government statements, verified news reports, and official trade data. It is intended for informational purposes only and does not constitute investment, legal, or policy advice. All trade targets and timelines are subject to change based on formal agreements.
