India’s Commerce Secretary, Sunil Barthwal, has announced that India’s exports to the UAE are expected to rise by approximately 60% to reach USD 50 billion by 2026-27, up from USD 31.3 billion at present. The increase is attributed to the free trade agreement between the two countries, which was implemented on May 1st, 2022.
Barthwal noted that the trade between India and the UAE has grown significantly after the implementation of the free trade agreement. He added that he is optimistic about the future of the trade relationship between the two countries.
“We are hoping that we will be able to reach USD 50 billion in exports by 2026-27. In the five years of trade after CEPA, I feel that we should be able to reach USD 50 billion in exports. I am very sure that the kind of response that we are hearing, we will definitely reach that,” Barthwal told reporters.
The free trade agreement between India and the UAE aims to enhance the trade relationship between the two countries by reducing trade barriers and increasing market access. The agreement covers various sectors, including goods, services, and investment.
The agreement has already had a significant impact on the trade relationship between India and the UAE. In the first year after the implementation of the agreement, India’s exports to the UAE increased by 10%, reaching USD 31.3 billion.
The UAE is India’s third-largest trading partner, with bilateral trade between the two countries reaching USD 60 billion in 2021. India’s major exports to the UAE include petroleum products, precious stones, and metals, while the UAE’s major exports to India include petroleum products, gold, and diamonds.
The increase in exports is expected to benefit both countries by creating new opportunities for businesses and boosting economic growth. The free trade agreement between India and the UAE is a positive step towards strengthening the trade relationship between the two countries and achieving their shared goal of increasing bilateral trade.