India-UAE bilateral trade to surpass USD 88 billion this year
Image credit: Zoom Bangla News
Sheikh Abdullah bin Zayed Al Nahyan, the foreign minister of the United Arab Emirates, is in India for a two-day official visit to improve ties between the two nations.
The UAE Foreign Minister met with S Jaishankar, the Minister of External Affairs, on his official visit.
Since 2014, there have been significant developments in the relationship between India and the UAE. India and the UAE anticipate surpassing $88 billion in annual bilateral commerce. UAE surpassed the United States and China as India’s third-largest commercial partner.
The bilateral trade reached USD 36.82 billion in the five months of the current fiscal year (CFY), from April to August. CFY revenue is anticipated to exceed 88 billion USD, compared to 73 billion USD in the previous fiscal year.
UAE inked its first CEPA (Comprehensive Economic Partnership Agreement) with India in February of this year. For India, it was the first in the previous ten years. In May 2022, it became effective.
When compared to the same period the previous year, the bilateral trade for April through August of FYY increased by 38%. During this time, exports rose by 27% while imports rose by 45%, partly as a result of higher crude prices.
Additionally, both nations are debating using UPI as a platform for payments for remittances from the 3.5 million-strong Indian population in the UAE.
The UAE has made investments totalling more than USD 10 billion. These include some significant financial commitments like USD 2 BN in Reliance Jio and Reliance Retail (June 2020), USD 2 BN in Adani (renewable energy, Apr 2022), and USD 1 BN in TATA Motors (electric vehicles, Oct 2021).
In addition, the leaders published a Joint Vision Document. It gives the trajectory of bilateral relations a forward-looking economic impetus. The Vision Document serves as a guide for continued exploration of fresh fields, including the establishment of IIT, green hydrogen cooperation, fintech, the creation of a specialised food corridor, health cooperation (including efforts to develop Africa), skills, defence exports, etc.
Both nations are discussing investments under I2U2 from the UAE totalling USD 2 billion to build food corridors in India and USD 300 million to construct a 300 GW hybrid (wind and solar) power plant.
The ties between the two nations have grown stronger over time. As a special invitee, the UAE has been invited to the G-20 Summit.