India and UAE Aim for $100 Billion Non-Oil Trade by 2030
The target of achieving a USD 100 billion non-oil trade between India and the UAE by 2030 is no small feat, but according to CII President R Dinesh, it is ambitious yet entirely feasible. The two nations boast vast business opportunities, particularly in sectors such as textiles, jewellery, and pharmaceuticals, making this target a realistic goal.
The target of achieving a USD 100 billion non-oil trade between India and the UAE by 2030 is no small feat, but according to CII President R Dinesh, it is ambitious yet entirely feasible. The two nations boast vast business opportunities, particularly in sectors such as textiles, jewellery, and pharmaceuticals, making this target a realistic goal.
Dinesh expressed his optimism while attending the global investors' event 'Investopia' and engaging in bilateral meetings, including those at the WTO Ministerial Conference. He highlighted that the free trade agreement between India and the UAE, which came into effect in May 2022, has already led to a notable increase in bilateral trade and investments.
Expanding Horizons: Comprehensive Economic Partnership Agreement
The comprehensive economic partnership agreement, as it is officially known, encompasses duty-free access to labor-intensive sectors like gems and jewellery, textiles, leather, pharmaceuticals, medical devices, and various engineering products. This agreement has already begun to yield results, with bilateral trade reaching USD 84.9 billion in the fiscal year 2022-23, solidifying India's position as the UAE's top non-oil trading partner.
According to Dinesh, the combination of India's expansive consumer base and burgeoning manufacturing capabilities, coupled with the UAE's status as a global trade hub, creates a symbiotic relationship that benefits both countries. Moreover, the UAE's role as a significant supplier of crude oil to India plays a pivotal role in the bilateral trade, with oil shipments comprising a substantial portion of the trade volume.
Game-Changer Agreement: Unlocking Boundless Opportunities
Emphasizing the transformative nature of the agreement, Dinesh pointed out that it opens up a plethora of opportunities across various service sectors, including but not limited to telecommunications, construction, education, finance, health services, tourism, hospitality, and transportation. The pact is not just limited to services; it also lays the groundwork for Indian and UAE companies to collaborate and integrate into global supply chains, fostering manufacturing activities in both nations.
A significant highlight mentioned by Dinesh is the remarkable surge in foreign direct investment (FDI) from the UAE to India, which has more than tripled, reaching USD 3.35 billion in the fiscal year 2022-23. This surge in investment presents an opportune moment to synergize the 'Make in India' and 'Made in Emirates' initiatives, encouraging joint ventures, technology transfers, and ultimately leading to production diversification and value addition.
Nurturing Growth: Collaborative Initiatives for a Prosperous Future
Dinesh underscored the importance of streamlining logistics, promoting cross-border e-commerce, and supporting startups to bolster trade dynamics further. Additionally, collaborations in sustainable industrial development, technology transfer, and energy security are crucial, with promising prospects for UAE firms in India's energy, regional connectivity, and maritime sectors.
Healthcare and education were identified as other promising sectors in India ripe for UAE investment, showcasing the diverse array of opportunities available for bilateral cooperation. Moreover, the collaboration in energy security and trade, particularly in green hydrogen and energy storage, holds immense promise for India, given the UAE's significant role as a source of crude oil and LPG.
In conclusion, the advancements in fintech collaboration, exemplified by the acceptance of the RuPay card in the UAE, serve as a testament to the deepening commitment to the partnership between India and the UAE, paving the way for a mutually beneficial future.
Hey there, I'm Mohamed Rahat, your go-to writer for all things business and economy. Originally from Mumbai, now rocking it in Navi Mumbai. With a past life at Tata Power Co. Ltd., I'm here to unravel the mysteries of the economic world, one article at a time. Stick around for some mind-bending insights! Connect With Me