UnitedExim

UAE-India Trade: A Partnership for Prosperity

The United Arab Emirates (UAE) blends tradition with modernity, creating a land of dreams and opportunities. Golden deserts stretch endlessly, whispering tales of ancient Bedouins. Towering skyscrapers rise boldly, reflecting human ambition and innovation. The azure waters of the Arabian Gulf embrace its shores, offering breathtaking vistas. Dubai dazzles with its futuristic skyline, luxurious lifestyle, and world-class attractions. Abu Dhabi, the capital, showcases cultural richness with grand mosques, museums, and artistic marvels. Sharjah preserves heritage through its historic souks and vibrant arts scene. Every emirate adds a unique charm, weaving a rich tapestry of history and progress.

UAE-India Trade

The UAE welcomes people from around the globe, fostering diversity and harmony. Bustling markets brim with exotic spices, textiles, and gold, while lavish malls redefine shopping experiences. The nation thrives on ambition, constantly pushing for technology, sustainability, and innovation. With its warm Arabian hospitality, the UAE welcomes visitors with open arms, offering a unique blend of adventure, luxury, and culture in perfect harmony. From thrilling desert safaris to serene beaches, sky-high dining, and soulful traditions, every corner of the UAE tells a fascinating story. In this land of endless possibilities, dreams take flight, and the future unfolds with boundless promise.

What are India and UAE's trade relations?

India and the United Arab Emirates (UAE) share a robust and dynamic trade relationship, marked by significant economic cooperation and mutual growth.

Bilateral Trade Overview

• Trade Volume: In the fiscal year 2022-2023, bilateral trade between India and the UAE reached approximately US$85 billion, positioning the UAE as India's third-largest trading partner after China and the United States.
• Export and Import Dynamics: India's exports to the UAE at over US$35.62 billion in FY 2023-2024, with key sectors including mineral products, precious metals, and machinery. Conversely, the UAE's exports to India prominently feature mineral products and precious metals.

Comprehensive Economic Partnership Agreement (CEPA)

• Implementation: The CEPA between India and the UAE came into effect on May 1, 2022, aiming to bolster trade by reducing tariffs and enhancing market access.
• Impact: Since its implementation, bilateral trade has increased by approximately 15%, with projections to reach US$100 billion in non-oil trade within five years.

Recent Developments

• Currency Settlement: In August 2024, the Reserve Bank of India encouraged banks to facilitate direct rupee-dirham trade settlements, aiming to reduce reliance on the US dollar and streamline bilateral transactions.
• Investment Initiatives: The Abu Dhabi Investment Authority commenced operations in India's Gujarat International Finance Tec-City (GIFT City) in October 2024, reflecting deepening investment ties.

This multifaceted partnership continues to evolve, fostering economic growth and strategic collaboration between India and the UAE. India taps the UAE as a vital market, with the country driving 7.96% of India's export share, valued at US$ 11,454.24 million—a significant 12.60% surge from the previous year. Petroleum products and jewellery propel this growth, positioning the UAE as a key regional hub for Indian exports.

What drives the UAE's economic prosperity, and how does it sustain its growth and development?

The UAE’s economic prosperity stems from visionary leadership, strategic diversification, and global connectivity. It sustains growth through innovation, infrastructure, and a business-friendly environment.

Key Drivers of UAE’s Economic Prosperity

• Oil and Gas Wealth
  • The UAE holds the seventh-largest proven oil reserves.
  • Oil exports fuel government revenues, supporting large-scale infrastructure and social projects.
• Economic Diversification
  • Non-oil sectors contribute over 70% of GDP, reducing dependency on oil.
  • The UAE invests heavily in tourism, trade, aviation, real estate, and financial services.
• World-Class Infrastructure
  • Mega projects like Burj Khalifa, Dubai Metro, and Expo 2020 sites boost global appeal.
  • Advanced logistics hubs like Jebel Ali Port and Al Maktoum International Airport strengthen trade.
• Business and Investment Policies
  • Tax incentives, free zones, and 100% foreign ownership attract global businesses.
  • The UAE ranks among the top destinations for ease of doing business.
• Tourism and Hospitality
  • Dubai and Abu Dhabi attract millions with luxury hotels, cultural sites, and shopping festivals.
  • The UAE invests in sustainable tourism and eco-friendly attractions.

Sustaining Growth and Development

• Innovation and Technology
  • Initiatives like UAE Vision 2030 and Dubai’s Smart City strategy drive AI, fintech, and green energy.
  • Space missions, including the Hope Probe to Mars, enhance global prestige.
• Sustainability and Renewable Energy
  • The UAE leads clean energy with projects like the Mohammed bin Rashid Solar Park.
  • The country actively invests in carbon reduction and sustainable urban development.
• Education and Skilled Workforce
  • World-class universities and talent development programs support long-term economic resilience.
  • The UAE attracts skilled expatriates through competitive salaries and lifestyle benefits.

The UAE’s commitment to innovation, sustainability, and strategic planning ensures it remains a global economic powerhouse.

What are the Export opportunities to the UAE from India?

India has immense export opportunities in the UAE, driven by strong bilateral trade, strategic location, and a large expatriate Indian population. The Comprehensive Economic Partnership Agreement (CEPA) has further enhanced market access by reducing tariffs and boosting trade.

Key Export Opportunities from India to the UAE

1. Petroleum Products & Chemicals

• India exports refined petroleum, lubricants, and chemicals to meet the UAE’s industrial and energy needs.
• Organic chemicals and pharmaceuticals have high demand due to the UAE’s growing healthcare sector.

2. Gems, Jewellery & Precious Metals

• The UAE is a global hub for gold and diamond trading.
• Indian exporters supply gold jewellery, diamonds, and gemstones to Dubai’s bustling jewellery markets.

3. Textiles & Apparel

• India is a major supplier of cotton, synthetic fabrics, and ready-made garments.
• Indian ethnic wear, handlooms, and fashion brands have strong demand in the UAE’s retail sector.

4. Engineering Goods & Machinery

• Indian machinery, auto components, and industrial tools have a growing market in the UAE.
• Construction materials like steel, cement, and ceramics support the UAE’s infrastructure projects.

5. Food & Agro Products

• Indian rice, spices, tea, coffee, and processed foods cater to the UAE’s diverse population.
• Fresh fruits, vegetables, and dairy products have strong demand in supermarkets and hotels.

6. Electronics & IT Products

• India exports Mobile phones, laptops, and consumer electronics.
• The UAE's thriving digital economy fuels a surge in demand for innovative IT services and cutting-edge software.

Emerging Opportunities

• Renewable Energy: Indian solar panels and energy solutions align with UAE’s sustainability goals.
• Pharmaceuticals & Healthcare: Growing demand for Indian generic medicines and medical devices.
• Automobiles: Indian electric vehicles (EVs) and budget-friendly cars are gaining traction.

With favourable trade policies and strong demand across sectors, Indian exporters can expand their footprint in the UAE and tap into lucrative opportunities.

What are the support and policies in the UAE?

The UAE government actively supports businesses and investors through progressive policies, economic diversification, and strategic initiatives. It fosters a business-friendly environment with tax incentives, free zones, and innovation-driven policies.

Key Government Support and Policies in the UAE

1. Business & Investment Policies

• 100% Foreign Ownership: Businesses in most sectors can have full foreign ownership, eliminating the need for local sponsors.
• Ease of Doing Business: Digital platforms streamline venture registration, licensing, and approvals.
• Attractive Tax Structure: The UAE offers 0% personal income tax and a competitive 9% corporate tax for businesses earning above AED 375,000.

2. Free Zones & Trade Support

• The UAE has over 40 free zones offering tax benefits, 100% repatriation of profits, and simplified regulations.
• Major free zones include Jebel Ali Free Zone (JAFZA), Dubai Internet City, Abu Dhabi Global Market (ADGM), and Sharjah Free Zone.
• The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE reduces tariffs and boosts trade.

3. Infrastructure & Logistics Support

• World-class airports, seaports, and Jebel Ali Port (one of the busiest in the world) enhance global trade connectivity.
• The Etihad Rail project strengthens logistics and cargo transport across the UAE.

4. Innovation & Technology Initiatives

• UAE Vision 2030 focuses on AI, fintech, blockchain, and intelligent city development.
• Dubai Future Accelerators and UAE Artificial Intelligence Strategy promote startups and digital transformation.

5. Renewable Energy & Sustainability Policies

• The UAE leads in green energy projects like the Mohammed bin Rashid Solar Park.
• Policies encourage carbon neutrality, electric vehicles (EVs), and sustainable urban development.

6. Workforce & Residency Programs

• Golden Visa (10-year residency) attracts skilled professionals, investors, and entrepreneurs.
• Green Visa allows freelancers and highly skilled workers.

The UAE’s government continues to innovate, making it a global business hub with strong economic growth and investor confidence.

United Arab Emirates

What is the potential for pharmaceutical generic medicines in the UAE?

The UAE offers immense potential for Indian pharmaceutical generic medicines, driven by rising healthcare demand, favourable regulations, and strong bilateral trade. India, known as the "Pharmacy of the World," is well-positioned to expand its generic medicine exports to the UAE.

Key Factors Driving Generic Medicine Potential in the UAE

1. Growing Healthcare Market

The UAE's healthcare sector projects $30 billion by 2028, driven by population growth and medical tourism. Many factors boost this growth, including:

• Increasing Demand for Healthcare Services: The UAE's population is rapidly growing, with an estimated 9.2 million residents, putting pressure on the healthcare system to provide quality services ¹.
• Rising Medical Tourism: The UAE is becoming a popular destination for medical tourism, attracting patients from around the globe seeking high-quality, affordable healthcare services.
• Government Initiatives and Investments: The UAE government aggressively drives growth in the healthcare sector by investing heavily in developing world-class infrastructure, improving healthcare services, and promoting medical tourism. This proactive approach is part of the UAE's Vision 2021 National Agenda, which aims to create a world-class healthcare system that serves the needs of citizens and residents.
• Rising cases of lifestyle diseases (diabetes, cardiovascular issues) increase demand for affordable generic drugs.

2. High Dependence on Imports

• They import over 80% of medicines, presenting a prime opportunity for Indian pharmaceutical companies.
• Indian generics, known for quality and cost-effectiveness, can replace expensive branded medicines.

3. Favourable Trade Agreements

• The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has eliminated tariffs on many pharmaceutical products.
• Fast-track approvals and reduced regulatory barriers enhance Indian exporters’ market access.

4. Rising Demand for Affordable Medicines

• UAE healthcare reforms focus on cost reduction and acceptable insurance coverage, making generics more attractive.
• The expanding insurance sector ensures better affordability and accessibility of medicines.

5. Supportive Regulatory Environment

• The UAE Ministry of Health and Prevention (MOHAP) encourages local manufacturing and generic drug imports.
• Dubai Science Park and Abu Dhabi Industrial Zones offer incentives for pharmaceutical firms.

Emerging Opportunities for Indian Pharma Companies

• Chronic disease drugs: Diabetes, cardiovascular, and oncology medicines see high demand.
• OTC and wellness products: Herbal medicines, nutraceuticals, and supplements are growing sectors.
• Contract manufacturing & joint ventures: Indian firms can collaborate with UAE-based pharmaceutical players.

With heavy demand, trade benefits, and government support, India’s pharmaceutical industry has vast export potential in the UAE.

What are the helpful portals that promote Indian Exports in the UAE?

Several government and trade portals promote Indian exports to the UAE, offering market insights, trade facilitation, and business matchmaking. These platforms help exporters connect with buyers, navigate regulations, and expand their market presence.

Key Portals Promoting Indian Exports in the UAE

1. Indian Government Portals

• DGFT – Directorate General of Foreign Trade
  • DGFT Provides export-import policies, incentives, and trade facilitation support.
  • It offers trade notifications, licensing details, and export data.
• India Trade Portal
  • India Trade Portal helps exporters access tariff information, market intelligence, and trade agreements.
  • It provides a database of international buyers and business opportunities.
• Export Promotion Councils (EPCs)
  • EPC sector-specific councils promote exports in pharmaceuticals, textiles, engineering goods, and more.
  • Some key EPCs for UAE trade:
    • Pharmaceutical Export Promotion Council (Pharmexcil)
    • Gems and Jewellery Export Promotion Council (GJEPC)
    • Engineering Export Promotion Council (EEPC India)

2. UAE-Based Trade & Investment Platforms

• Dubai Chamber of Commerce
  • They provide business networking, trade licensing, and regulatory assistance.
  • It assists Indian exporters in expanding their footprint in Dubai.
• Abu Dhabi Chamber of Commerce
  • It supports trade relations, business setup, and investment opportunities.
  • They offer guidance on UAE’s import regulations and trade policies.
• Jebel Ali Free Zone (JAFZA)
  • JAFZA is the largest free zone in the UAE, providing tax benefits and trade infrastructure.
  • Helps Indian exporters establish distribution hubs in the UAE.

3. Bilateral Trade & Investment Platforms

• India-UAE Comprehensive Economic Partnership Agreement (CEPA) Portal
  • Details tariff reductions, export benefits, and trade facilitation under CEPA.
  • Helps businesses leverage duty-free access to UAE markets.
• Federation of Indian Export Organisations (FIEO)
  • Provides trade fairs, buyer-seller meets, and export guidance.
  • It connects Indian exporters with UAE importers through virtual trade platforms.
• India-UAE Business Council (UIBC)
  • Strengthens trade relations and facilitates business collaboration.
  • Supports Indian companies looking to expand in the UAE.

These portals provide Indian businesses with a valuable gateway to explore export opportunities and establish a robust presence in the UAE market.

The UAE and India share a dynamic trade partnership built on trust, opportunity, and mutual growth. India exports diverse products, from pharmaceuticals to textiles, meeting the UAE’s rising demand. The Comprehensive Economic Partnership Agreement (CEPA) strengthens bilateral trade, reducing tariffs and boosting investment. The UAE’s strategic location, world-class infrastructure, and business-friendly policies attract Indian exporters. Innovation, technology, and sustainability drive future collaboration. As both nations expand their trade horizons, they create jobs, enhance economic ties and fuel global commerce. With strong policies and shared ambitions, UAE-India trade will continue to flourish, shaping a prosperous future for both economies.