SRINAGAR: Bilateral trade between India and the United Arab Emirates (UAE) has witnessed robust growth since the implementation of the Comprehensive Economic Partnership Agreement (CEPA) in 2022, according to data provided by the Ministry of Commerce and Industry, the government told Lok Sabha in response to a question by Baijayant Panda.
The Minister of State for Commerce and Industry, Jitin Prasada, revealed that India-UAE trade grew by 16.41 per cent in 2022-2023. Though there was a marginal decline of 1.4 per cent in 2023-2024, trade rebounded sharply with a 34.57 per cent increase in the first half of 2024-2025 (April-September). Total trade between the two nations stood at USD 48.66 billion during this period, with exports valued at USD 17.2 billion and imports at USD 31.46 billion.
The data shows a consistent rise in exports to the UAE, registering a growth of 12.71 per cent year-on-year for both 2022-2023 and 2023-2024. Imports from the UAE grew by a remarkable 52.01 per cent in the first half of 2024-2025 compared to the same period in the previous year.
Exports to the UAE have been particularly strong in key sectors. These include agricultural products like animal and vegetable goods, prepared food items, and engineering goods such as machinery, vehicles, and aircraft. Precious and semi-precious metals, along with chemical products, have also shown significant growth.
To further strengthen trade and ensure Micro, Small, and Medium Enterprises (MSMEs) benefit from the CEPA, the government has introduced several measures. Shri Prasada noted that the UAE provides preferential market access to over 97 per cent of its tariff lines, covering 99 per cent of Indian exports in value terms. These include products from labour-intensive MSME sectors such as gems and jewellery, textiles, leather, footwear, plastics, furniture, and agricultural goods.
A Joint SME Committee has been established under the CEPA framework to promote collaboration between SMEs in India and the UAE and to help businesses tap into emerging opportunities. The Ministry of MSME has also facilitated Indian participation in various trade fairs and exhibitions in the UAE through its International Cooperation Scheme. Additionally, financial assistance is being extended under Market Access Initiative (MAI) Schemes to boost exports from MSMEs.
With these efforts, the government said it aims to leverage CEPA to enhance trade relations with the UAE while empowering MSMEs and export-driven industries to achieve greater market access and competitiveness. The surge in trade figures highlights the positive impact of CEPA and signals further opportunities for economic cooperation between the two nations.
