India, UAE set $100 bn non-oil trade goal by 2030

New Delhi: India and the United Arab Emirates are targeting $100 billion in trade by 2030, excluding oil and precious metals, India’s commerce ministry said in a statement on Monday.

The target was decided during a meeting between Union commerce and industry minister Piyush Goyal and the UAE’s minister of foreign trade, Dr. Thani bin Ahmed Al Zeyoudi, in New Delhi last week. They were reviewing bilateral trade between the two countries under the Comprehensive Economic Partnership Agreement (CEPA) that came into effect in 2022.

Both leaders stressed deeper cooperation in emerging sectors such as renewable energy, digital infrastructure, supply chain, and healthcare, charting the next phase of bilateral economic engagement, according to the commerce ministry.

The meeting highlighted collaboration opportunities in renewable energy, digital technologies, logistics, and healthcare, it added.

The two ministers underlined the need for timely sharing of trade data for effective CEPA monitoring and agreed that the sub-committee on services will meet within two months.

On pharmaceuticals, Goyal welcomed the creation of the Emirates Drug Establishment as a positive step in addressing the regulatory concerns of Indian drugmakers, while the UAE assured faster registration processes and facilitation for healthcare products.

India also pressed for deeper market access in food exports, with the Agricultural and Processed Food Products Export Development Authority launching the Bharati Scheme to support more than 100 food and agritech startups.

According to the commerce ministry, bilateral goods trade between India and the UAE nearly doubled from $43.3 billion in 2020-21 to $83.7 billion in FY24. Non-oil exports alone touched $27.4 billion in FY24, clocking a growth rate of 25.6% annually since CEPA took effect, Mint reported on 8 April.

‘A reliable pillar of trade’

A memorandum of understanding signed with Dubai World Trade Centre will make India the partner country at Gulf Food 2026, where it will showcase products including marine items, tea, coffee, and spices across a 1,200 sq.m. pavilion.

The UAE also addressed the Indian industry’s concerns on high retail prices, pricing rules, and mandatory rice testing.

The discussions were complemented by stakeholder consultations with pharma and food companies, along with a joint industry interaction.

Goyal said the Indian economy’s 7.8% growth in the April-June quarter reflected its resilience, adding that the country was on track to become a $5 trillion economy by 2027 and a $32-35 trillion economy by 2047, which would mark 100 years of India’s Independence from British rule.

He cited reforms in taxation, ease of doing business, and regulatory simplification as key drivers of long-term growth.

The UAE’s Dr. Thani said that despite global turbulence, the India-UAE partnership had emerged as a reliable pillar of trade. He described India as a technological and agricultural powerhouse, adding that the UAE saw itself as a vital gateway for Indian businesses to Africa, West Asia, and Europe.

Bilateral trade (including petroleum) between India and the UAE surged to $99.7 billion in 2024-25—$36.3 billion in India exports and $63.4 billion in imports—from $83.6 billion in the year before and $84.8 billion in FY23, commerce ministry data show.

The Comprehensive Economic Partnership Agreement

Signed during a virtual summit between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the agreement came into force on 1 May 2022.

India exports a range of goods to the UAE, with refined petroleum products, chemicals, and gems and jewellery being key items. Other significant exports include pharmaceuticals, textiles, garments, and agricultural products such as rice, pulses, and spices.

In terms of imports, India primarily sources crude oil and petroleum products from the UAE, which are essential for meeting the country's energy needs. Natural gas, especially liquefied natural gas (LNG), is another key import from the UAE.

India also imports gold, precious metals, and stones from the UAE.