DUBAI: The India-UAE non-oil bilateral trade will reach $100 billion much before the 2030 deadline envisaged under the Comprehensive Economic Partnership Agreement (CEPA), according to Sudhir Babu, the newly appointed India’s Trade Commissioner to the UAE.
“In fact, the trade is expected to exceed the $100 billion target well ahead of the 2030 deadline if the present momentum is maintained. The bilateral non-oil trade has already reached $85 billion in FY24, recording a growth of 13 per cent over the 2022-23 fiscal year figures,” he said.
This growth highlights the UAE’s strategic role as India’s third-largest trading partner and second-largest export market, he added.
Sudhir Babu also suggested periodic review of the CEPA terms as and when traders face challenges for exploiting the full potential of the agreement.
He cited the concern of Indian industry over the dramatic increase in silver imports from the UAE, which have gone up to $1.7 billion in 2024 from $29 million in 2023.
India’s concerns
“Already the UAE has agreed to examine India’s concerns over a sharp increase in precious metal exports. The India GCC Trade Council will take up critical issues with the authorities from both sides to find amicable solutions,” he said.
Under the CEPA, operational since May 2022, the UAE has enjoyed significant tariff concessions – 1 per cent on gold and 7 per cent on silver – provided a 3 per cent local value addition is met.
Citing a recent news report, Sudhir Babu said the trade review has been prompted by complaints from Indian industry of a significant increase in precious metal imports from the UAE.
Trade conference
The council, in collaboration with the India Economic Trade Organization (IETO), affiliated to India’s commerce ministry, is planning to organize an international trade conference in Dubai with participation of top officials from both the countries to explore new trade opportunities.
He highlighted several key sectors where the council intends to focus, including IT, tourism, real estate, education, SMEs and MSMEs.
