News

Published: Feb 21, 2023
Updated: Feb 21, 2023

India's Trade with UAE Set to Cross $31 Billion Mark

India's trade with the United Arab Emirates (UAE) is set to reach new heights, as the country's exports to the UAE are expected to exceed $31 billion during the current fiscal year.

Factors Driving the Growth in Exports

This remarkable surge is attributed to the growing demand for sectors such as gems and jewellery, machinery, and automobiles, according to a government official. The free trade agreement implemented by India and the UAE last year is proving to be a valuable asset in promoting India's exports.

Rise in Non-Oil Exports

Non-oil exports from India to the UAE grew by 5% from June 2022 to January 2023, reaching $15.2 billion compared to the previous year's $14.5 billion. During the same period, imports rose by 3% to $16.8 billion.

Certification for Exporters

As many as 6,057 certificates of origin were issued in January to exporters, enabling them to take advantage of the trade agreement's concessional duty benefits. Certificate of origin is a key document required for exports to those countries with which India has trade agreements.

Sectors Showing the Highest Growth

During the first half of the fiscal year, exports of gems and jewellery and electrical machinery to the UAE rose by 16% and 29%, respectively, reaching $3.8 billion and $2.6 billion. In the same period, automobile exports increased by 38% to $475 million. Other sectors, such as coffee, tea, spices, sugar, man-made staple fibres, and edible vegetables, also experienced substantial growth in exports.

Possibility of a New Trade System

The official added that central banks of both countries are discussing the possibility of a rupee-dirham trade, and technical teams are working on the modalities.

UAE-India ties reach new heights

The significant surge in trade between India and the UAE is a result of the free trade agreement implemented last year and the growing demand for specific sectors. It is expected that this trend will continue to benefit both countries, allowing them to explore new opportunities and increase trade even further.