The India-UAE relationship is only likely to strengthen with growing synergies between both countries.
Author
Tridivesh Singh Maini, Assistant Professor-Diplomatic Practice, Jindal School of International Affairs, O.P. Jindal Global University, Sonipat, Haryana, India.
Summary
The CEPA (Comprehensive Economic Partnership Agreement) which came into force on May 1, 2022 has given a significant boost to bilateral trade between India and UAE. While in 2021-2022, bilateral trade between both countries was estimated at $72.9 billion, in 2022-2023 bilateral trade between India and UAE was estimated at $84.5 billion; and CEPA aims to lift bilateral trade to $100 billion. Some of the key sectors that have witnessed a rise in exports from India are; Gems & jewellery, agri-products and automobiles. Total direct investments of UAE in India are estimated at 17 billion as of September 2023.
India’s investments in the UAE are estimated at $8 billion. The India-UAE relationship is only likely to strengthen with growing synergies between both countries. India’s state governments are likely to emerge as important stakeholders and the visit of a UAE minister to Tamil Nadu is a strong reiteration of the same. State governments need to tap opportunities arising out of the CEPA and also growing synergies between India and UAE in the agriculture sector that will benefit both countries.
Published in: South Asia Monitor
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