UAE-India bilateral non-oil trade surges 7% to hit $45.5 billion in CEPA's 11 months

The minister of state said that the trade figures have been achieved amid a sharp decline in global trade in the third and fourth quarters of last year

Ashwani Kumar

Published: Mon 8 May 2023, 4:50 PM

Last updated: Mon 8 May 2023, 6:47 PM

The UAE-India bilateral non-oil trade has increased by 7 per cent to reach $45.5 billion in 11 months since Comprehensive Economic Partnership Agreement came into effect on May 1, 2022, a minister revealed in Abu Dhabi.

Dr Thani bin Ahmed Al Zeyoudi, UAE Minister of State for Foreign Trade, announced the latest figures while marking the first anniversary of the UAE-India CEPA at a special event during the opening day of Annual Investment Meeting (AIM).

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“One of the central goals of the UAE-India CEPA was to increase the flow of goods and services between our nations – and, by doing so, stimulate key export sectors, drive industrial output and kick-start an exciting new era of prosperity. The latest figures, which I’m revealing today for the first time, underline the pace of our progress. Between May 1, 2022, and March 31, 2023 – the first 11 months of the CEPA, bilateral non-oil trade reached 45.5 billion dollars. That is a 7 per cent increase on the corresponding period 12 months earlier,” the minister said during the celebratory event titled CEPA Beyond Trade. The UAE-India CEPA was signed on February 18, 2022, and took effect on May 1, 2022.

Al Zeyoudi said that the trade figures have been achieved amid a sharp decline in global trade in the third and fourth quarters of last year, proving that UAE and India are a “new centre of growth”.

“Even more impressive are the figures from Q1, 2023. In the first three months of the year, total bilateral trade reached $13.3 billion – 24.7 per cent increase on the previous quarter. It’s also 5.4 per cent higher than Q1, 2022, which was a record quarter for global trade. And those gains are in every metric: UAE’s non-oil exports climbed 33 per cent compared to Q4, 2022. Re-exports from India rose 31.5 per cent. All this means we are on course to easily surpass the $50-billion mark by the end of the year – and take a significant stride towards our $100-billion target by 2030,” Al Zeyoudi said.

The minister pointed out that strategic investments into key sectors are resulting in new solutions to challenges such as food security and energy transition.

“These are stakes in our collective future that go beyond bottom-line profits or immediate returns. Last year, for instance, the UAE announced a $2 billion investment in integrated food parks across India. We followed this up with support for a 300-megawatt hybrid renewable energy project in Gujarat. In Uttar Pradesh, I was able to see new joint-ventures that will support 20,000 jobs in renewable energy, logistics, retail, and food processing. These investment flows certainly aren’t one-way: many Indian-owned enterprises are now pursuing the sizeable opportunities available to them in the UAE, a gateway to the Middle East, Africa and Europe,” the minister added during the event supported by the Ministry of the Economy, Abu Dhabi National Oil Company (ADNOC), Lulu Group, the Indian People’s Forum (IPF) and Textile Merchants Group (Texmas). The event was attended by Sunjay Sudhir, Indian Ambassador to the UAE; businessmen including Salah Sharaf Al Hashmi, vice-president, Sharaf Group; Paras Shahdadpuri, chairman, Nikai Group; Adeeb Ahamed, managing director, LuLu Financial Holdings. Industry leaders participated in a series of panel discussions reflecting on the success stories of the partnership and exploring how the two sides are collaborating in areas such as food, fashion and the arts.

Set to cross the $100 billion target

Meanwhile, Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade, India’s the Ministry of Commerce and Industry, noted that the CEPA is poised to surpass the bilateral non-oil trade target of $100 billion by the end of 2030.

“We’re confident that CEPA is likely to accelerate bilateral businesses and help in realisation of the true potential of the complementary ecosystems between our two countries. Our bilateral merchandise target has recorded around $84 billion for the financial year of 2022-23 registering an increase of 16 per cent on a year-on-year basis. India’s exports to the UAE crossed $30 billion, recording 11 per cent growth rate. Imports from the UAE to India have also grown by 18 per cent.”

Singh said the “game-changing” agreement is leading to creation of newer opportunities and vistas of growth.

“The golden era of entrepreneurship is emerging from major cities of India, including Bangalore, Mumbai, New Delhi, and business hubs in the UAE, like Abu Dhabi, and Dubai,” Singh said and added: “We are warming up to a future of limitless possibilities and mutually win-win collaborations between our countries.”

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