Financial ties between the UAE and India have seen exceptional progress lately, underscoring a strategic partnership that’s increasing throughout key sectors equivalent to commerce, funding, vitality, and expertise.
Now not restricted to commerce, the connection now consists of deep funding partnerships and joint tasks which might be shaping a extra built-in and forward-looking financial collaboration.
In keeping with a report launched by Dubai Chambers in the course of the Dubai-India Enterprise Discussion board, the UAE ranked as India’s third-largest world buying and selling accomplice in 2024, following China and the US, with imports valued at US$60.1 billion and exports at US$37.8 billion.
Dubai performs a central function on this relationship, accounting for 85 % of the UAE’s non-oil commerce with India, which reached $54.2 billion in 2023. The town’s non-oil commerce with India rose from $36.7 billion in 2019 to $45.4 billion in 2023, largely fuelled by the Complete Financial Partnership Settlement (CEPA) signed in 2022.
In 2023, Dubai’s high exports to India have been valuable stones and metals, totalling $14.65 billion, adopted by equipment, plastics, and aluminum. Imports from India have been led by valuable stones and metals at $10.1 billion, together with electronics, mineral fuels and bituminous, equipment and iron and metal.
On the funding entrance, the UAE invested $2.9 billion in India in the course of the 2023–2024 fiscal yr, making it India’s seventh-largest investor.
India’s financial progress stays robust in comparison with nearly all of rising markets. Projections point out the financial system is on observe to develop by a mean of 6.5 % per yr between 2025-26, positioning India among the many world fastest-growing main economies.
This progress is anchored on three principal drivers: government-led infrastructure funding, rising rural demand supported by robust agricultural output, and elevated personal funding, notably in infrastructure-linked and export-oriented industries.
Inflation can also be anticipated to ease, with shopper value inflation forecast to lower to 4.3 % in 2025 as world commodity costs reasonable and provide bottlenecks ease, decreasing from 4.9 % in 2024.
India’s increasing manufacturing base, particularly in electronics and prescription drugs, helps a beneficial outlook for 2026-29.
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