India recorded a significant increase in its imports from the UAE in November, with a sharp rise of 109.57% year-on-year to reach $6.12 billion, according to the latest data released by the Commerce Ministry. Exports from India to the UAE also experienced growth, increasing by 11.38% to $3 billion, leaving a trade deficit exceeding $3 billion.
The trade figures highlight the growing significance of economic ties between the two nations. The bilateral trade relationship was further boosted by the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force in May 2022. Under this free trade pact, both countries have experienced improved access to each other’s markets.
Trade Overview: April to November 2024-25
Between April and November 2024, India’s cumulative imports from the UAE surged by 60.84%, reaching $44.76 billion, compared to $27.83 billion during the same period in the previous fiscal year. Meanwhile, exports to the UAE climbed by 15.25%, amounting to $23.94 billion, up from $20.77 billion in April-November 2023-24.
The UAE holds a vital position as India’s third-largest trading partner, with total bilateral trade reaching $83.65 billion in the fiscal year 2023-24. The top items imported include mineral oil, chemicals, essential oils and perfumes, precious and semi-precious stones, and various metals like iron, steel, copper, nickel, and aluminium.
Global Trade Partners
The data also sheds light on India’s top trading partners. The UAE remains one of the key players in India’s global trade network, alongside China, Russia, the US, Iraq, and Saudi Arabia as primary import sources. For exports, the top destinations during April-November 2024 were the US, the UAE, the Netherlands, the UK, and China.
Sectoral Contributions and Economic Impact
The free trade agreement with the UAE has opened new avenues for economic collaboration, particularly in sectors such as energy, precious metals, and industrial goods. With the global economic landscape evolving, this partnership not only strengthens India’s position in the Gulf region but also contributes to the nation’s broader goals of economic resilience and diversification.
Conclusion
The India-UAE trade relationship continues to thrive, reflecting the growing alignment of economic priorities between the two countries. As the CEPA agreement matures, it is expected to further enhance bilateral trade, offering significant opportunities for businesses on both sides.
