Bilateral non-oil trade between the UAE and India surged past US $37.6 billion in the first half of 2025, marking a 33.9 per cent increase compared with the same period in the previous year. The UAE’s Foreign Trade Minister, Dr Thani bin Ahmed Al Zeyoudi, highlighted during his Mumbai visit the pivotal role of the Comprehensive Economic Partnership Agreement in propelling this growth. Discussions focused on expanding cooperation across pharmaceuticals, food and logistics, alongside Bharat Mart, a 2.7 million sq ft trade complex in Jebel Ali Free Zone designed for Indian exporters to reach markets across the Middle East, Africa and Europe.
Trade figures underscore that CEPA has significantly deepened economic ties. In 2024, non-oil trade between the two nations topped US $65 billion, reflecting a 19.7 per cent increase from 2023 and more than doubling the 2020 tally of US $27.9 billion. UAE investments in India reached around US $17 billion by late 2023, while Indian investments in the UAE climbed to approximately US $8 billion—total mutual investment topping US $25 billion, with the UAE accounting for 70 per cent of that figure.
This dynamic was further backed by the UAE-India CEPA Council’s Start-up Series, which has drawn more than 10,000 applications from Indian entrepreneurs since its launch in June 2025. The initiative, showcased in New Delhi by Ahmed Aljneibi, has made stops at leading institutions including Banaras Hindu University and the Master’s Union School of Business, offering mentorship, regulatory guidance and pathways for cross-border scale-up.
The strategic focus on innovation also extends beyond startups. Sheraa, Sharjah’s entrepreneurship centre, and Startup Middle East signed a memorandum to establish an India Startup Hub in Sharjah, aimed at facilitating the entry of Indian ventures into the UAE market and strengthening regional innovation ecosystems.
Policy measures in the UAE are evolving to match this economic outreach. Amendments to more than 40 laws, most notably the Commercial Companies Law enabling 100 per cent foreign ownership, are part of a broader strategy to double the non-oil economy—from US $381 billion to US $762 billion—by 2030. Foreign trade is viewed as central to achieving that ambition, with the UAE’s connectivity, infrastructure and logistics network seen as vital assets for Indian businesses seeking wider regional access.
CEPA’s architecture underscores its comprehensive approach: since its implementation in May 2022, tariffs on more than 80 per cent of Indian exports to the UAE have been reduced or eliminated immediately, benefiting sectors from gems and jewellery to pharmaceuticals and automobiles. Additional gains accrue from streamlined customs protocols, regulatory harmonisation and a joint committee addressing market-access and technical barriers.
Experts point to CEPA as transformative for both economies. Indian gems and jewellery exports more than doubled from US $4.9 billion to US $8 billion in fiscal year 2024, aided by duty removals. Labour-intensive industries such as textiles, leather, footwear, sports goods, plastics, furniture, engineering goods, agricultural produce and food items have also gained momentum, while regulatory alignment has accelerated entry of generic drugs and medical devices, boosting health-sector cooperation and supply-chain resilience.
Further integration is visible in emerging fintech and logistics initiatives. Bharat Mart reinforces logistical synergy, while the nascent Virtual Trade Corridor, fintech sandboxes and experiments such as India’s MagRail pilot demonstrate growing interoperability in digital trade and compliance systems.
At the political level, the CEPA enters its third year this February. Al Zeyoudi noted that India remains the UAE’s second-largest non-oil export destination, accounting for 13.5 per cent of total non-oil exports in 2024—a 75.2 per cent rise year-on-year. Conversely, the UAE is India’s third-largest trading partner and a major investor, illustrating the strategic depth CEPA has added to bilateral ties.