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India-UAE bilateral trade expected to exceed $88 billion this year

After USA and China, UAE became India’s 3rd largest trading partner.

November 22, 2022 / 07:59 PM IST
 (PC-ANI)

(PC-ANI)

The relationship between India and UAE has seen transformational changes since 2014 and their bilateral trade is projected to surpass $88 billion this year, reported news agency ANI.

After USA and China, UAE became India’s 3rd largest trading partner.

Sheikh Abdullah bin Zayed Al Nahyan, the foreign minister of the United Arab Emirates, is currently in India for a two-day official visit to advance relations between the two nations.

The UAE Foreign Minister also met with S Jaishankar, the Minister of External Affairs, on his official visit.

The bilateral trade reached USD 36.82 billion in the five months of the current fiscal year (CFY), i.e. April to August. CFY revenue is anticipated to exceed 88 billion USD, compared to 73 billion USD in the previous fiscal year.

Prime Minister Narendra Modi made four trips to the UAE over the past eight years. In the past three months, even the foreign ministers have met four times.

In February of this year, the UAE and India inked their first-ever Comprehensive Economic Partnership Agreement (CEPA). It was India's first in the previous ten years and it became effective in May 2022.

Comparing April through August of CFY to the same time in 2016, bilateral trade increased by 38%. Exports rose by 27% during this time, but imports rose by 45%, partly as a result of higher crude prices.

Both nations are also deliberating using UPI as a platform for payments for the 3.5 million-strong Indian community living in the UAE.

The UAE has made investments totaling more than USD 10 billion. These include some significant financial commitments like USD 2 bn in Reliance Jio and Reliance Retail (June 2020), USD 2 bn in Adani (renewable energy, April 2022), and USD 1 bn in TATA Motors (electric vehicles, Oct 2021).

Reliance has invested USD 2 billion in a joint venture for petrochemicals in the UAE, making it a two-way investment (Dec 2021).

In addition, the leaders published a Joint Vision Document. It gives the trajectory of bilateral relations a forward-looking economic impetus.

The Vision Document serves as a guide for continued exploration of fresh fields, including the establishment of IIT, Green Hydrogen cooperation, fintech, the creation of a specialised food corridor, health cooperation (including efforts to develop Africa), skills, defence exports, etc.

A Hindu temple will also be built on 26 acres of land donated by the government in Abu Dhabi.

In accordance with I2U2, both nations are talking about UAE investments totaling USD 2 billion for the construction of food corridors in India and USD 300 million for a 300 GW hybrid (wind and solar) power plant.

With time, the ties between the two nations have become stronger. UAE has also been invited as a special invitee to the G-20 Summit.
Moneycontrol News
first published: Nov 22, 2022 07:59 pm