India’s bilateral trade with the United Arab Emirates (UAE) has crossed $100 billion, marking a significant milestone in economic relations between the two countries. External Affairs Minister S. Jaishankar announced the development during a meeting with UAE Deputy Prime Minister and Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan in Mumbai on October 20, 2026.
Jaishankar said the India-UAE Comprehensive Strategic Partnership was delivering on its potential after years of sustained engagement. He highlighted growing two-way investments and expanding cooperation in trade, energy, defence, technology and cultural exchanges.
CEPA Drives Bilateral Trade Growth
The Comprehensive Economic Partnership Agreement, signed on February 18, 2022, came into force on May 1, 2022. The agreement aims to reduce trade barriers, improve market access and create new opportunities for businesses in both countries.
According to UAE government figures, bilateral trade reached approximately $101.25 billion in FY2025–26, compared with $100.05 billion in FY2024–25. The UAE remains India’s third-largest trading partner, while India is the UAE’s second-largest trading partner. Both countries have set a target of increasing bilateral trade to $200 billion by 2032.
Investment is another important part of the partnership. UAE-based sovereign wealth funds, financial institutions and companies have invested in Indian infrastructure, real estate, logistics and financial services. Indian companies also maintain a significant presence in the UAE across trade, manufacturing and services.
Jaishankar Calls for Dialogue on Gulf Situation
Alongside economic cooperation, the two ministers discussed the security situation in the Gulf and wider West Asia. Jaishankar described the regional situation as a matter of deep concern and said India would continue to support efforts to promote peace through dialogue and diplomacy.
He reiterated India’s support for the free, safe and unimpeded movement of trade, energy and fertilisers. The statement reflects the importance of secure shipping routes and stable energy supplies to India’s economy, particularly amid regional tensions that can disrupt transport and commodity flows.
Jaishankar also thanked the UAE leadership for looking after the Indian community living in the country, highlighting the people-to-people ties that underpin the bilateral relationship.
Energy, Defence and Technology Cooperation Expand
The discussions covered opportunities to strengthen cooperation in strategic sectors, including energy, defence and technology. Both countries view these areas as important to their broader economic and strategic partnership.
The UAE is an important energy supplier and investment partner for India, while India offers a large consumer market and opportunities across infrastructure, technology and manufacturing. Continued cooperation in these areas could support trade growth and strengthen supply-chain links.
The latest meeting underscores the two countries’ efforts to deepen economic ties while coordinating on regional stability. With bilateral trade already above $100 billion and a $200 billion target set for 2032, future progress will depend on sustained investment, improved market access and a stable regional environment.
