Economic relations between the UAE and India have experienced remarkable growth, evolving into a dynamic and strategic partnership that spans trade, investment, energy, and technology.
Today, April 8, His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, Crown Prince of Dubai, Deputy Prime Minister and Minister of Defence of the UAE, and Chairman of The Executive Council of Dubai, met with India’s Prime Minister Narendra Modi in Delhi. Their meeting focused on expanding collaboration, strengthening economic ties, and leveraging their respective strengths to drive mutual prosperity.
UAE Becomes India’s Third-Largest Trading Partner
As per a report by Dubai Chambers at the Dubai-India Business Forum, the UAE emerged as India’s third-largest global trading partner in 2024, with imports from India valued at $60.1 billion and exports to India at $37.8 billion. This marks a key milestone in the relationship, underscoring the UAE’s growing influence in India’s economic landscape.
Dubai’s Key Role in UAE-India Trade
Dubai continues to play a pivotal role in the economic ties between the two nations. The city accounts for 85% of the UAE’s non-oil trade with India, which reached an impressive $54.2 billion in 2023. This figure has surged from $36.7 billion in 2019 to $45.4 billion in 2023, largely driven by the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022.
Top Exports and Imports Between UAE and India
In 2023, Dubai’s key exports to India included precious stones and metals, totaling $14.65 billion, followed by machinery, plastics, and aluminum. On the import side, India’s exports to Dubai were led by precious stones and metals, amounting to $10.1 billion, along with electronics, mineral fuels, and machinery.
UAE’s Investment in India on the Rise
The UAE also made notable strides in investment, contributing $2.9 billion to India’s economy in the 2023–2024 fiscal year. This made the UAE India’s seventh-largest investor, further solidifying their financial ties.
His Highness Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum took to X and wrote, “It was a great pleasure to meet the Prime Minister, Narendra Modi, in New Delhi today. Our talks made it clear once again that UAE-India relations are built on mutual trust, inspired by history, and driven by a shared vision aimed at building a future full of opportunities, innovation, and lasting prosperity.”
Meanwhile, PM Modi wrote, “Glad to meet HH Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum, the Crown Prince of Dubai. Dubai has played a key role in advancing the India-UAE Comprehensive Strategic Partnership. This special visit reaffirms our deep-rooted friendship and paves the way for even stronger collaboration in the future.”
India’s Strong Economic Growth Outlook
India’s economic growth remains robust compared to other emerging markets, with projections suggesting a growth rate of 6.5% annually from 2025 to 2026. The key drivers behind this growth include government-led infrastructure investments, rising rural demand driven by strong agricultural output, and a surge in private investment, particularly in infrastructure-linked and export-oriented industries.
Inflation Eases as India Looks Toward the Future
India’s inflation is expected to ease, with consumer price inflation forecast to decrease to 4.3% in 2025, down from 4.9% in 2024. This reduction will be attributed to the moderation of global commodity prices and the easing of supply bottlenecks.
Favorable Outlook for India’s Manufacturing Sector
India’s expanding manufacturing base, especially in electronics and pharmaceuticals, contributes to a favorable economic outlook for the 2026–2029 period. This growth trajectory positions India as one of the world’s fastest-growing major economies, making it a key player in the global economic landscape.
