The UAE and India have distinguished trade relations and both sides are eager to boost bilateral trade flows over the coming years, primarily through new long-term partnerships across multiple sectors including the fields of commerce and transportation. Furthermore, the UAE and India’s economies are codependent due to the vast amount of reciprocal trade and investment flows between both countries. The bilateral relationship between the UAE and India matured and transformed into a comprehensive strategic partnership.
- The foreign trades figure between the two countries stood merely around USD 182 Million and in the financial year 2018-19, the foreign trades figure reached USD 60 Billion, which reflects the strengthening economic relationship between the UAE and India currently.
- The UAE is ranked third among India’s top trading partners (after the USA and China), while India is the UAE’s second top trading partner after China. The Balance of Trade (BoT) is balanced for both the countries.
- Indian exports to the UAE mainly include gems and jewelry, vegetables, fruit, spices, engineering goods, tea, meat and its preparations, rice, textiles and apparel and chemicals.
- While the main exports from the UAE to India include crude & petroleum products, gold & silver, pearls, precious and semiprecious stones, metal ores & metal scrap, electronics goods and transport equipment. Both sides are keen on further expanding and improving trade and investment ties by exploring new areas of cooperation and solving existing challenges.
- Existing investments and projects include the establishment of a USD $75 billion sovereign fund for Infrastructure by the UAE for India and expanding strategic cooperation in the food security sector by establishing a UAE-India Food Corridor. Both countries have also witnessed a strengthening in relations across the energy, space and railways sector.
- Moreover, Indian expats (approx. 3 millions in UAE) play an important role in strengthening the economic and cultural ties between the UAE and India. Their remittances from the UAE to India are around USD 13 billion annually and a number of them have become entrepreneurs investing in India and around the globe. They even hold up to 50 % of the UAE real estate market.
- Furthermore, the UAE and India share a number of mutual platforms such as the High Level Task Force for Investment, the Strategic Dialogue, the Joint Commission and the UAE-India Economic forum which allows experts and specialists from both sides to meet and hold discussions on a number of issues, aiming to ultimately raise the bilateral relations between both countries to new levels.