ABU DHABI: The India UAE trade partnership is entering a new phase as both countries work towards doubling bilateral trade to $200 billion by 2032, supported by expanding investment, easier market access and growing cooperation beyond traditional energy ties.

Trade between the two countries has already crossed the $100 billion milestone. According to India’s official diplomatic data, bilateral trade reached about $101.25 billion in FY 2025-26, making the UAE India’s third-largest trading partner and second-largest export destination. India, meanwhile, ranks as the UAE’s second-largest trading partner.

Why has India-UAE trade grown?

A major driver has been the Comprehensive Economic Partnership Agreement, or CEPA, which entered into force on May 1, 2022.

The agreement provides reduced or eliminated tariffs on more than 80 per cent of products and improves market access across services and government procurement. It also seeks to remove unnecessary technical barriers facing exporters

Trade has consequently expanded beyond oil into sectors including gems and jewellery, food, textiles, chemicals, electronics and engineering goods.

The India UAE trade partnership is now increasingly focused on diversifying these commercial links further.

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Where could the next wave of growth come from?

Investment is becoming another important pillar.

UAE entities have invested more than $25 billion in India since 2000, while Indian companies have invested around $16 billion in the UAE, according to September 10 reporting. Cooperation is expanding across infrastructure, clean energy, advanced manufacturing and digital technology.

Projects such as Bharat Mart in the UAE are expected to provide Indian businesses, particularly smaller companies, with greater access to markets across the Middle East and beyond.

The two countries are also working on initiatives including the Virtual Trade Corridor and Bharat-Africa Setu, which are intended to connect businesses with wider regional markets.

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Why does the $200 billion target matter?

The target effectively requires bilateral trade to almost double from current levels by 2032.

Reaching it will depend on stronger non-oil commerce, investment flows and improved logistics alongside established energy trade.

The India UAE trade partnership also has a strong people-to-people foundation, with a large Indian community living and working in the Emirates and extensive business connections between the two markets.

Future cooperation is expected to extend into areas such as fintech, digital payments, clean energy, infrastructure and advanced technology.

The $200 billion goal therefore represents more than simply increasing the value of goods crossing borders. It reflects an effort to develop a broader economic corridor connecting two rapidly growing markets.

Impact to expect

Growth. Expanding trade could create new opportunities for UAE and Indian companies, particularly in technology, manufacturing, logistics, food, clean energy and cross-border investment.