India’s Bilateral Trade Relations with UAE and Qatar – Explained

28 February 2024

India’s bilateral trade relations with the United Arab Emirates and Qatar is likely to see a boost after Indian Prime Minister Narendra Modi visited both the countries. India signed trade agreements with both the countries that will benefit Indian companies. The UAE is one of India’s closest strategic and energy partners in West Asia, and trade was boosted by the signing of a free trade agreement (FTA) in 2022. As India celebrates the release of its citizens, who were facing death sentences in Qatar, here’s look at the trade relations between the two countries.

India’s Bilateral Trade with UAE

India’s bilateral trade the UAE stood USD 85,173 million in 2022, and USD 64,017 million in 2023 (till Oct data). India’s imports from the UAE are higher than exports. Here is a complete picture of India’s trade with the United Arab Emirates in the given chart.

*****Value in Million USD

India’s top exports to UAE are mineral fuels and oils, pearls and precious stones, electrical machinery and equipment, nuclear reactors, boilers, machinery, mechanical appliances, etc., and organic chemicals. Here are the values of these commodities.

India’s major imports from UAE are mineral fuels and oils, pearls, and precious stones, tanning or dyeing extracts, plastics and articles, and salt, sulphur, earths, and stone. Check and visualize the values of these import categories in the given chart.

India’s Bilateral Trade with Qatar

India and Qatar bilateral trade reached USD 19,540 million in 2022, and till October 2023, that dollar amount was USD 11,919 million. India’s imports from Qatar are higher than exports. India imported goods from Qatar worth USD 17,551 million and exported goods to Qatar worth USD 1,989 million.

*****Value in Million USD

India’s major exports to Qatar are cereals, mineral fuels & oils, articles of iron & steel, vehicles other than railway or tramway, and nuclear reactors, boilers, machinery, mechanical appliances, etc. Below given chart shows values of these commodities.

India’s significant imports from Qatar are mineral fuels & oils, organic chemicals, plastics & articles, fertilisers, and inorganic chemicals. Qatar stands as India’s largest supplier of LNG, accounting for over 48% of India’s global LNG imports. Look at the chart to analyse values of these products.

Bharat Mart – India’s Latest Middle Eastern Trade Push Launched by PM Modi

Prime Minister Narendra Modi inaugurated ‘Bharat Mart’ in Dubai that would push trade India and the United Arab Emirates. This is a warehousing facility for Indian MSMEs to trade in Dubai. It is expected to be operational by 2025. Like China’s Dragon Mart, the facility will offer a unified platform for Indian exporters to showcase a variety of products under one roof. The aim is to establish a base and engage in trade from the UAE. The complex will be located at the Jebel Ali Fee Trade Zone in Dubai and will be set more than 100,000 square meters. Here are key points related to the Bharat Mart.

The Bharat Mart initiative assumes importance as India and the UAE are striving to double their non-petroleum trade target to $100 billion by 2030 as part of the Comprehensive Economic Partnership Agreement (CEPA).

It is an effective platform for Indian sectors to reach out to international buyers in the Gulf, West Asia, Africa, and Eurasia.

Indian companies are expected to be benefited to expand their business operations in Europe, Africa, and the United States.

India and the United Arab Emirates have signed 10 agreements to collaborate in areas such as infrastructure, energy, investments, and archive management.

India and the United Arab Emirates also signed Intergovernmental Framework Agreement on the India-Middle East Economic Corridor (IMEC). The IMEC initiative calls for a sea-land connectivity project linking India with West Asia and Europe in an apparent move to counter the controversial Belt and Road Imitative of China.