Trade Tides: India's Import Surge with UAE

India's imports from the UAE significantly increased by 109.57% year-on-year, resulting in a trade deficit exceeding USD 3 billion in November. The bilateral trade between the two nations reached USD 83.65 billion. Despite China's position as the top import source, exports to the UAE also saw growth.

India's trade dynamics with the United Arab Emirates have experienced a notable shift, as imports surged by 109.57% year-on-year in November, totaling USD 6.12 billion. This increase has contributed to a trade deficit of over USD 3 billion, according to the latest data from the commerce ministry.

While imports grew, India's exports to the UAE also saw a modest rise, increasing by 11.38% to reach USD 3 billion last month. This marks a cumulative growth of 15.25% in exports for the April-November period, amounting to USD 23.94 billion, compared to the previous fiscal year.

The trade agreement between India and the UAE took effect in May 2022. During this fiscal year, the major products imported from the UAE included mineral oil, chemicals, essential oils, and precious stones, among others. Despite China's dominant role in India's import market, the UAE remains a key trading partner with USD 83.65 billion in bilateral trade during 2023-24.

(With inputs from agencies.)