India and the UAE have deepened trade and economic ties since their Comprehensive Economic Partnership Agreement, the UAE’s first bilateral trade deal, came into effect in 2022.
Trade between the Arab world’s second-largest economy and New Delhi had surged past $100 billion by the end of the 2025-2026 financial year, from about $60 billion when the Cepa entered into force.
The Cepa has provided many benefits, including enhanced market access, lower or eliminated tariffs, simpler customs procedures, clear and transparent rules, and rule-based competition that helps to increase trade.
As part of the agreement, 80 per cent of tariffs were lifted on goods between the UAE and India, and all tariffs were set to be removed within 10 years, Dr Thani Al Zeyoudi, Minister of Foreign Trade, said when the deal was signed.
The two countries are aiming to double bilateral trade to $200 billion by 2032 as they bolster business and investment ties.
The UAE currently ranks as India's third-largest trading partner and second-largest export destination, while India is the UAE's second-largest trading partner after China, according to official data.
Trade between the UAE and India includes petroleum products, gems and jewellery, food, textiles, chemicals, electronic goods and engineering items.
Investment has also been growing in energy, infrastructure, private equity, financial services and real estate.
Investment ties
From April 2000 to March 2026, cumulative foreign direct investment from the UAE into India amounted to $25.59 billion, making the UAE the seventh-largest overseas investor, according to the Indian embassy's website.
Abu Dhabi’s sovereign wealth fund Mubadala Investment Company, Abu Dhabi Investment Authority, DP World and International Holding Company are among the top firms investing in India, in sectors such as infrastructure, telecoms, ports and logistics, and real estate.
In 2020, Mubadala bought a 1.85 per cent stake in Reliance Industries' digital platform in a $1.2 billion deal. It also invested in Indian non-banking financial company Avanse Financial Services as part of its expansion in the South Asian nation. Other investments include India’s Manipal Health Enterprises, which operates more than 30 hospitals across India.
Long-term priority for IHC
Abu Dhabi’s International Holding Company is also increasing investment in India. Its latest deal is a $11.5 billion investment to develop an aluminium project in partnership with Adani Group.
IHC, one of the most valuable holding companies in the Middle East, operates through more than 1,300 subsidiaries and has a presence in technology, infrastructure, financial services and the consumer sector.
Last year, IHC also agreed to acquire a 43.5 per cent stake in India’s Sammaan Capital in a $1 billion deal to diversify its portfolio of assets.
India represents a long-term priority for the Abu Dhabi-listed conglomerate, with a five-year investment plan in place, its chief executive, Syed Basar Shueb, told The National in January.
“We are pretty significantly investing in India,” he said. “We are investing in renewable solar power projects. We are investing in battery solution. We are investing in nuclear, we are investing in aluminium smelter and real estate development.”
DP World, the Dubai-based global ports operator, pledged in October to invest an additional $5 billion in India to strengthen its integrated supply chain network.
That investment is in addition to the $3 billion DP World has invested in India over the past three decades.
Indian prime minister's visit
India’s Prime Minister Narendra Modi visited the UAE in May and the two countries signed a series of agreements. These included an initial agreement between Indian Strategic Petroleum Reserves Limited (ISPRL) and Adnoc for the storage of up to 30 million barrels of UAE crude oil in India, and a potential crude storage opportunity in Fujairah.
Abu Dhabi technology company G42 also formalised an agreement with the Indian government to establish an 8 exaflop supercomputing cluster amid India's plans to grow its artificial intelligence sector.
UAE push to diversify
The UAE has been taking steps to boost its global trade flows, with the Cepa programme a key contributor.
It has signed 37 Cepas with trading partners, 18 of which are in force. They include deals with India, Turkey, Jordan, Serbia, Vietnam and Ukraine.
The agreements helped the country’s non-oil foreign trade surge by 26 per cent in 2025 to exceed $1 trillion for the first time.
The UAE's non-oil trade with countries where Cepas are in force reached Dh304.3 billion ($82.9 billion) during the first half of 2026, Dubai media office reported. Imports from these countries amounted to Dh193.5 billion, while non-oil exports amounted to Dh66.1 billion during the same period.
China remained the UAE's largest trading partner in the January to June period, with non-oil trade reaching Dh180.7 billion, followed by Switzerland at Dh138.4 billion, and India at Dh107.5 billion.
