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Mon, Nov 10, 2025 | Jumada al-Awwal 19, 1447 | Fajr 05:13 | DXB 
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UAE-India Cepa ignites big trade boom, nears $100 billion target
Non-oil trade — a critical pillar of the UAE’s diversification strategy — has been turbocharged by the deal, says Dr Al Zeyoudi
A landmark trade agreement between the UAE and India has fuelled a remarkable surge in bilateral commerce, with merchandise trade soaring from $43.3 billion in FY 2020–21 to $80.5 billion in the first 10 months of the current fiscal year, according to latest data.
The Comprehensive Economic Partnership Agreement (Cepa), signed three years ago, has not only revitalised economic ties but also positioned the two nations to smash their $100 billion trade target years ahead of the 2030 deadline while scripting a new playbook for global economic collaboration, said Faizal Kottikollon, chairman of the UAE India Business Council’s UAE Chapter (UIBC-UC).
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The transformative impact of Cepa took centrestage at a high-profile event hosted by Satish Kumar Sivan, consul-general of India to Dubai and Northern Emirates, marking the second anniversary of the UIBC-UC and the third year of the trade pact. Attended by UAE Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi, Indian Ambassador Sunjay Sudhir, and industry leaders, the gathering underscored the agreement’s role as a cornerstone of one of the world’s fastest-growing economic partnerships.
In his keynote address, Dr Al Zeyoudi hailed CEPA as a gamechanger, emphasising its role in unlocking new trade and investment avenues. He noted that non-oil trade — a critical pillar of the UAE’s diversification strategy — has been turbocharged by the deal. The UAE’s non-oil foreign trade hit a record Dh3 trillion ($816.7 billion) in 2023, up 14.6 per cent year-on-year, far outpacing global trade growth of just 2.0 per cent.
Ambassador Sudhir highlighted the human dimension of the partnership, stressing that “investing in talent and innovation is the bedrock of sustainable growth.” His remarks dovetailed with the launch of new research initiatives aimed at guiding policymakers and businesses in navigating the evolving trade landscape.
Cepa’s success lies in its dramatic diversification of trade flows. India’s non-oil exports to the UAE reached $27.4 billion in FY 2023–24, growing at an annualised rate of 25.6 per cent since the deal took effect. While traditional sectors like gems, jewelry, and refined petroleum products remain vital, cutting-edge industries are now driving growth. Exports of electrical machinery, industrial boilers, and organic chemicals have surged, with smartphones emerging as an unexpected star — shipments to the UAE hit $2.57 billion this fiscal year.
“These numbers aren’t just statistics; they represent jobs, innovation, and shared prosperity,” said Kottikollon. “We’re witnessing a fundamental shift in how our economies interact.”
The UAE’s broader Cepa strategy — it has signed similar deals with several nations — has added Dh135 billion to non-oil trade with partner countries, up 42 per cent annually. With Dh3 trillion in total foreign trade already achieved for 2023, the emirates has crossed 75 per cent of its ambitious Dh4 trillion 2031 target seven years early.
Operational efficiency has been critical to the pact’s success. Indian exporters have leveraged preferential tariffs under Cepa through 240,000 Certificates of Origin, facilitating $19.87 billion in exports. To address bottlenecks, both nations established a joint committee, which has met twice at the senior official level, most recently in October 2023. Technical teams have resolved issues ranging from customs procedures to rules of origin, while subcommittees now oversee services trade and digital facilitation.
“This isn’t a static agreement,” noted an Indian commerce ministry official. “Every meeting produces concrete solutions—whether it’s simplifying paperwork or aligning product standards.”
Future growth may hinge on infrastructure like the Bharat Mart, a Dubai-based megaproduct inaugurated by Prime Minister Narendra Modi. Designed as a “one-stop shop” for global buyers to access Indian goods, the facility is expected to streamline exports across sectors from textiles to engineering goods.
As protectionism rises elsewhere, the UAE-India partnership offers a template for South-South cooperation. The Indian Commerce Ministry credits Cepa with empowering MSMEs, generating jobs, and creating “a new era of economic diplomacy.” For the UAE—already the Arab world’s second-largest economy — the pact reinforces its role as a gateway linking Asia, Africa, and Europe.
“We’re not just on track to hit $100 billion—we’re redefining what’s possible,” concluded Kottikollon. With bilateral trade growing at over 20 per cent annually since Cepa’s implementation, that future may arrive sooner than anyone imagined.
Issac John
Issac John is Managing Editor at Khaleej Times and has over 45 years of experience in top-tier newspapers across UAE. A seasoned business writer and economic analyst, he brings unmatched insight into the geopolitics and geoeconomics shaping the Gulf and India.
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