India and the UAE are strengthening their economic partnership, with bilateral trade crossing $100 billion by the end of the 2025-26 financial year. Trade has risen from around $60 billion when the Comprehensive Economic Partnership Agreement (CEPA) came into effect in 2022.
The two countries are now targeting $200 billion in bilateral trade by 2032. The CEPA has supported this growth through lower tariffs, improved market access and simpler customs procedures.
The UAE is currently India’s third-largest trading partner and second-largest export destination. India is the UAE’s second-largest trading partner after China.
Investment ties are also expanding. UAE foreign direct investment into India reached $25.59 billion between April 2000 and March 2026, making the UAE India’s seventh-largest overseas investor.
Investment is spread across energy, infrastructure, ports, logistics, financial services and real estate. Emerging areas such as artificial intelligence and battery technologies are also gaining attention.
Major UAE-linked investors, including Mubadala, ADIA, DP World and International Holding Company, are expanding their presence in India. DP World has pledged an additional $5 billion investment, while IHC has announced major investments in sectors including aluminium and renewable energy.
The growing partnership reflects a broader shift from traditional oil-linked trade towards deeper cooperation in technology, infrastructure, energy and other non-oil sectors.
