CEPA boosts India, UAE trade; food security in focus

New Delhi: Trade between India and the United Arab Emirates increased 14.76% year-on-year in 2023-24 to $83.64 billion, the first full financial year since the implementation of the Comprehensive Economic Partnership Agreement (CEPA), according to the annual report of the UAE India CEPA Council.

While India's exports to the UAE surged 27.03%, the UAE's exports to India went up 7.09% from 2022-23. CEPA, which came into force on May 1, 2022, helped reduce trade barriers and facilitate growth, said the report.

Trade between India and the UAE has grown from a modest $180 million annually in the 1970s. The UAE is India's third-largest trading partner, after the United States and China. Moreover, the UAE has become India's second-largest export destination, according to the report.


Food security has emerged as a key area of bilateral focus. Major initiatives, such as the UAE's commitment to invest more than $2 billion in integrated food parks across India and the $7 billion UAE India Food Security Corridor, will drive the adoption of advanced agri-tech solutions aimed at strengthening regional and global food supply chains, the report said.

India's non-oil trade with the UAE increased 20.1% to $59.72 billion in 2023-24 from $49.73 billion in the previous year. During the financial year, Indian investments of about $1.16 billion in the UAE were directed towards diverse industries ranging from technology to logistics. The UAE emerged as India's fourth largest foreign investor, with $3.35 billion committed to supporting high potential sectors across the country, according to the report.

The UAE India CEPA Council, launched in 2024, is a bilateral body supported by the governments of the two countries which aims to facilitate investments and trade between the two countries. It will prioritise collaboration in crucial sectors such as startups, women's entrepreneurship, micro, small, and medium enterprises and the services sector.