India and the UAE Strengthening Ties In Concern To the Economic Corridor

25 October 2023

Following the establishment of the India-Middle East-Europe Economic Corridor, India, and the UAE are growing towards the strengthening of their economic ties and paving the way for a better exchange of goods and services. India and the UAE work together to identify the commodities where trade between the countries can be diversified. The move allows trade between both countries to be efficient and widen the scope of this mutual economic support and cooperation.

India-UAE Yearly Trade

India’s imports from the UAE have escalated in recent years, as per the trade data released by our trade data team. The imports of India from the UAE amounted to $27 billion in 2018, followed by $30.3 billion in 2019, and declined by 21.14% in 2020 with a value of $23.9 billion.

In 2021, the total value of imports in India coming from the UAE amounted to $43 billion, showing an increase of 80.20% YoY. In 2022, the value of imports surged even further than the value of imports in 2021, showing an increase of 25.03% with a total value of $53.8 billion.

The exports of India to the UAE were higher than the imports shipped in from the UAE ports with a value of $29.1 billion, as per trade data online showing information about the year 2018. India’s exports to the UAE amounted to $29.5 billion in 2019, followed by a decline in 2020.

The exports registered a decrease of 39.22% in 2020 on a YoY basis, standing at a value of $17.9 billion. However, in the post-pandemic year of 2021, the value of exports increased by a whopping 41.74% with a value of $25.4 billion and stood at a value of $31.3 billion in 2022.

India-UAE Top Products

The top imports of India, shipped in from the UAE for the year 2022 consist of—Mineral Fuels and Oils ($28.2 billion), Pearls and Precious Metals ($14.7 billion), Plastics ($1.5 billion), Aircraft and Spacecraft ($1.3 billion), with Ships and Boats ($1 billion), along with other top imports.

As per the shown trade data, India imports fuels and oils in significant values from the UAE followed by imports of pearls, stones and precious metals. These two commodities are in a higher range of values and might get a spotlight in concern to mutual economic cooperation.

The top exported products by India shipped out to the UAE in 2022 include mineral fuels and oils ($8.7 billion), followed by pearls and precious stones & metals ($5.5 billion), electronics ($3.4 billion), iron and steel ($1.3 billion), and industrial products ($990.6 million) with others.

The below-shown export data shows that the most valuable exports from India to the UAE are the same products that India imports from the UAE, as per trade data 2022. However, as per recent reports, India’s non-basmati white rice has particular importance in the UAE’s markets.

India-UAE Trade 2023

The quarterly trade between India and the UAE shown below provides an overview of the latest trade statistics and trends. The imports and exports between both countries are showing declining values for the ongoing year 2023.

The imports and exports of India in relation to the UAE accounted for values in the following manner: $14.6 billion and $7.8 billion in Q3-2022, $12.8 billion and $7.2 billion in Q4-2022, $12.7 billion and $8.2 billion in Q1-2023, $10.3 billion and $7.5 billion in Q2-2023.

India and the UAE have previously signed a trade agreement under the name of the UAE-India Comprehensive Economic Partnership Agreement (CEPA), and it tried to remove or at least slash the value of tariffs on more than eighty percent of product lines (or Chapters).

However, both countries are still behind in implementing the partnership agreement and cooperative initiatives that will allow both countries to participate in mutually beneficial trade and pave the way for a more inclusive and sustainable exchange of goods and services.