India and the United Arab Emirates are strengthening their economic partnership, with bilateral trade crossing $100 billion in FY2024-25. The milestone was achieved five years ahead of the target set under the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022.

The two countries have set a new target of increasing bilateral trade to $200 billion by 2032. The agreement to raise the target was reached during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to India earlier in 2026.

While energy has traditionally been a major pillar of India-UAE economic relations, trade has diversified considerably. Non-oil trade between the two countries increased nearly 20% to reach $65 billion, spanning engineering goods, gems and jewellery, food and agricultural products, chemicals, textiles, pharmaceuticals and services.

India’s exports to the UAE crossed $36.63 billion, making the country India’s second-largest export destination. Major exports include refined petroleum products, gold and diamond jewellery, engineering goods, garments, pharmaceuticals and processed food. UAE exports to India remain led by crude oil, gold and petrochemicals.

Economic cooperation is also expanding into emerging and high-value sectors such as semiconductors, artificial intelligence, renewable energy, fintech, healthcare, critical minerals and civil nuclear energy. Indian companies have established operations across the UAE in sectors including manufacturing, construction, hospitality, healthcare, retail and education.

The partnership is also extending to opportunities in third-country markets. UAE-India Business Council Chairman Faizal Kottikollon highlighted potential collaboration across African growth corridors in infrastructure, healthcare, logistics, digital ecosystems, sustainability and human development.

Further bilateral engagement is expected to focus on strengthening cooperation across trade, investment, energy security, technology, culture and people-to-people relations.