India-UAE non-oil trade nears $100 billion under CEPA; Goyal calls ties a global model of prosperity

New Delhi: With bilateral trade between India and the UAE accelerating under the Comprehensive Economic Partnership Agreement (CEPA), Union Commerce and Industry Minister Piyush Goyal on Monday said that the two nations were on course to meet their ambitious target of $100 billion in non-oil trade, calling the relationship a “model of prosperity, trust and shared vision” for the world.

Speaking at the Dubai-India Business Forum in Mumbai, Goyal described the surge in trade and investment as a sign of strategic maturity in ties and urged businesses from both countries to scale up collaboration across sectors.

“The UAE is helping shape India’s journey to becoming a developed nation,” he said, emphasising the growing breadth of the economic and cultural partnership.

Also read |  India, EU aiming for a mutually beneficial FTA: Piyush Goyal

The agreement, signed in February 2022 and enforced from May that year, has significantly boosted merchandise trade flows. According to the commerce ministry, bilateral goods trade has nearly doubled from $43.3 billion in FY21 to $83.7 billion in FY24. Non-oil exports alone touched $27.4 billion in 2023–24, clocking a growth rate of 25.6% annually since CEPA took effect.

High-growth segments include electrical machinery, high-tech goods, organic chemicals, and smartphones—India exported over $2.5 billion worth of mobile phones to the UAE last fiscal.

Symbolic visit

Monday’s event, organised by Dubai Chambers, saw the presence of Sheikh Hamdan bin Mohammed Al Maktoum, Crown Prince of Dubai, on his first official visit to India. Goyal called the visit symbolic, as it marks 100 years since Sheikh Hamdan’s grandfather, Sheikh Saeed, visited Mumbai—a nod to the historical depth of the relationship. “Mumbai and Dubai share a timeless bond, and this visit reaffirms the strength of that relationship,” he said.

The UAE has emerged not only as a major trading partner but also a critical ally in India's broader strategic objectives. Goyal credited the close personal rapport between Prime Minister Narendra Modi and UAE leadership for the momentum in bilateral engagement.

“There have been six high-level visits in just two years—three from each side—which is a reflection of how far we’ve come,” he said.

Also read |  Govt confident of economic rebound despite global challenges, says Piyush Goyal

The minister also acknowledged the UAE’s support in social and cultural spheres, including its role in building the Swaminarayan temple in Abu Dhabi and its outreach to over two million Indians during the pandemic. “You have looked after them like family,” he said.

In addition to goods trade, the CEPA has sparked new initiatives in education and innovation. Goyal pointed to the launch of an Indian Institute of Technology (IIT) campus in Dubai and said plans were underway to open campuses of the Indian Institute of Management (IIM) and the Indian Institute of Foreign Trade (IIFT) as part of a deeper push in skill development.

He also underscored the UAE’s growing role in India's connectivity, logistics and Africa outreach strategy. “DP World has played a vital role in reshaping India’s logistics landscape,” Goyal noted, adding that partnerships in physical and digital infrastructure are set to expand.

Looking ahead, he urged Indian and Emirati businesses to explore untapped opportunities in green hydrogen, fintech, AI, critical minerals, food security, and even nuclear energy. “This is just the tip of the iceberg,” he said. “With shared ambition and trust, we can achieve much more.” 

Also read |  Govt open to exploring alternative financing models for MSMEs: Piyush Goyal