UAE and India Explore Expanding Comprehensive Economic Partnership

UAE-India Trade Partnership Surges 34% as Both Nations Push to Unlock Full Economic Potential

The UAE and India are intensifying efforts to maximize their comprehensive economic partnership agreement, with bilateral non-oil trade jumping 33.9% to $37.6 billion in the first half of 2025. As both nations work to expand benefits across more economic sectors, the partnership is proving its worth as a cornerstone of Middle East-South Asia commerce, positioning the UAE as India's gateway to global markets.

High-Level Diplomatic Push Targets Underutilized Sectors

UAE Minister of Foreign Trade Dr. Thani bin Ahmed Al Zeyoudi's recent official visit to Mumbai underscored both countries' commitment to deepening their economic ties. During bilateral discussions with Indian Minister of Commerce and Industry Piyush Goyal, the focus centered on identifying sectors that have yet to fully capitalize on the Comprehensive Economic Partnership Agreement (CEPA), which took effect in May 2022.

The ministerial meetings were followed by targeted discussions with senior executives across logistics, agriculture, healthcare, and technology sectors. Business roundtables organized by major Indian industry bodies—including the Confederation of Indian Industry, FICCI, and ASSOCHAM—aimed to align priorities and boost trade and investment flows between the two nations.

Strategic Infrastructure Projects Signal Long-term Vision

A highlight of Al Zeyoudi's visit was a presentation on the "Bharat Mart" project, a massive 2.7 million square foot complex located in Dubai's Jebel Ali Free Zone and managed by DP World. This facility represents more than just a trading hub—it's a strategic asset that allows Indian manufacturers and exporters to leverage the UAE's position as a global trade center for accessing Middle Eastern, African, and European markets.

The project exemplifies how both nations are thinking beyond traditional trade agreements, creating physical infrastructure that supports long-term commercial relationships and supply chain integration.

Impressive Growth Numbers Validate Partnership Strategy

The 33.9% surge in bilateral non-oil trade to $37.6 billion demonstrates the CEPA's effectiveness in driving commercial activity. This growth trajectory puts both countries on track to achieve the ambitious targets set when the agreement was signed, validating the strategic decision to prioritize this bilateral relationship.

For context, this performance stands out in a global environment where many trade partnerships have struggled with supply chain disruptions and economic uncertainty. The UAE-India corridor has proven remarkably resilient, suggesting that the complementary nature of both economies—UAE's logistics and financial hub status paired with India's manufacturing capabilities—creates natural synergies.

Pharmaceutical and Food Sectors Lead Expansion Efforts

Specialized meetings with pharmaceutical and food industry leaders revealed sector-specific opportunities and challenges. These discussions focused on export performance analysis, addressing existing barriers, and exploring new areas for cooperation. Given India's position as a global pharmaceutical manufacturing hub and the UAE's role as a regional distribution center, this sector alignment could yield significant benefits for both economies.

Regional Implications and Global Context

The UAE-India partnership reflects broader trends in regional economic integration, particularly as Gulf states diversify their economies away from oil dependence. Similar to Singapore's approach to becoming a regional hub, the UAE is leveraging its geographic position and business-friendly environment to become an essential link between major economies.

For investors and businesses, this partnership offers several advantages: reduced tariffs, streamlined customs procedures, and access to two of Asia's most dynamic markets. The success of this bilateral agreement could serve as a model for other regional partnerships, particularly as countries seek alternatives to traditional Western-dominated trade routes.

What This Means for Market Players

The sustained growth and institutional support behind the UAE-India partnership suggests several opportunities for market participants. Companies in logistics, manufacturing, and services sectors should consider how this corridor could enhance their regional strategies. The infrastructure investments, particularly projects like Bharat Mart, indicate that both governments are committed to long-term success rather than short-term gains.

For global businesses looking to access South Asian or Middle Eastern markets, the UAE-India partnership provides a proven pathway with established infrastructure and regulatory frameworks. The emphasis on expanding beyond traditional sectors also suggests opportunities in emerging areas like technology and healthcare services.