UAE and India on track to hit $100bn non-oil trade

9 May 2024 09:40 pm Views - 149

The UAE and India will surpass the $100 billion non-oil trade target by 2030, with increasing aviation links between the two countries seen as a potential catalyst.

Bilateral trade increased by 15 percent since the comprehensive economic partnership agreement (Cepa) was implemented in May 2022, the Indian government-owned Press Trust of India reported, quoting Cepa council director Ahmed Aljneibi.

Trade between the UAE and India rose from $73 billion to $84 billion between 2021 and 2023.

In addition, the Gulf state’s foreign direct investment in India increased to $3.3 billion last year.

Aljneibi said partnerships in fintech, edtech, healthtech and cleantech are likely to propel the next phase of the UAE-India’s shared growth story.

The official said there is great potential to improve air transportation and air cargo links between the two countries, citing relatively low bilateral seat capacity arrangements between the UAE and Indian airlines. 

Currently, seat-sharing capacity stands at 134,000 passengers per week and cargo capacity is at 4,000 tonnes per week.

Aljneibi expected both the UAE and Indian carriers to be able to fully benefit from the strategic partnership, which has evolved since the signing of the Cepa.(AGBI)