Commerce and Trade Minister of India Piyush Goyal recently met with his counterpart from the UAE, Dr. Thani Bin Ahmed Al Zeyodi. Both ministers met in Delhi to review trade agreements signed between India and the UAE under the Comprehensive Economic Partnership Agreement in 2022.
The meeting of the commerce ministers comes amidst the backdrop of India's increasing efforts to diversify its imports and exports. Ever since the US has imposed tariffs on the Indian economy, the latter is actively pursuing alternative trade partnerships. Piyush Goyal and Al Zeyodi's meeting has resulted in both their respective countries announcing an increase in bilateral trade to $100 billion annually by 2030.
What other things did the meeting achieve?
The main motive or achievement of this meeting is the MOU signed between India and the Dubai World Trade Center. This memorandum of understanding prioritises the positioning of India as a partner country at Gulf Foods. This event will provide India a stage to showcase its tea, coffee, and spices.
What is CEPA?
The Comprehensive Economic Partnership Agreement is signed by Prime Minister Narendra Modi and UAE President Sheik Zayed. The agreement was signed virtually in 2022, although it came into being in May of 2022.
What are India's Exports to the UAE?
India exports a variety of goods and services to the UAE. The primary ones include refined petroleum products, gems and jewellery, along with chemicals. Other than these, a significant part of the exports are pharmaceuticals, textiles, and food products like grains, spices, and pulses.
What are India's Imports to the UAE?
As far as imports are concerned, crude oil, petroleum products make up a big chunk of India's imports. The UAE is a strategic country for India's energy security. Other significant imports include Natural Gas, gold, and precious stones.
What's the Volume of Bilateral Trade?
The volume of bilateral trade between India and the UAE, which is inclusive of energy-related products, was around $99 billion in the financial year 2024-25.
This is an increase from the $83 billion worth of trade in the financial year 2023-24. Although a sizeable chunk of trade is made up of imports by India, around $63 billion and $36 billion worth of exports.