India-UAE Trade Boom: Reaching New Heights

The India-UAE free trade agreement effectively boosted bilateral trade to over USD 100 billion since its commencement in May 2022. It serves as a gateway to African, GCC, CIS, and European markets, enhancing trade in sectors like gems, engineering, and agriculture. The FDI from UAE is also significant.

The India-UAE free trade agreement has successfully propelled bilateral trade beyond USD 100 billion since its implementation in May 2022, as per Commerce and Industry Minister Piyush Goyal.

This Comprehensive Economic Partnership Agreement has not only strengthened connections with the UAE but also opened avenues in Africa, the GCC, CIS, and parts of Europe. The agreements have positively impacted sectors such as gems and jewellery, engineering, electronics, and agriculture.

In the fiscal year 2025-26, India's exports to the UAE increased by approximately 2% to USD 37.36 billion, while imports rose by 0.77% to USD 63.89 billion. Consequently, there is a trade deficit of USD 26.53 billion. Moreover, foreign direct investment from the UAE into India remained substantial.