UAE And India On Course To Exceed $100 Billion Non-Oil Trade Target
The United Arab Emirates (UAE) and India are on track to exceed their ambitious goal of reaching $100 billion in non-oil trade by the year 2030. This optimistic forecast is bolstered by the strengthening aviation connections that are poised to play a pivotal role in this economic achievement. Since the implementation of the comprehensive economic partnership agreement (Cepa) in May 2022, there has been a notable 15 percent increase in bilateral trade, according to the Press Trust of India, citing remarks from Cepa council director Ahmed Aljneibi.
Trade figures between the two nations have shown a significant rise, moving from $73 billion to $84 billion over the span of two years, from 2021 to 2023. Moreover, the UAE's foreign direct investment (FDI) in India saw a substantial increase, reaching $3.3 billion last year. These developments highlight the growing economic synergy between the UAE and India, further encouraged by the Cepa arrangement.
Aljneibi underscored the importance of advancing partnerships in key sectors such as fintech, edtech, healthtech, and cleantech as fundamental drivers for the next stage of mutual economic growth between the UAE and India. He also pointed out the significant potential to enhance air transportation and air cargo connections, which currently have room for expansion. The relatively low bilateral seat capacity arrangements between the UAE and Indian airlines suggest that there is considerable potential for growth in this area. Presently, the seat-sharing capacity is capped at 134,000 passengers per week, with cargo capacity limited to 4,000 tonnes per week.
With the strategic partnership between the two countries continuously evolving since the signing of the Cepa, there is an expectation that both UAE and Indian carriers will be able to fully capitalize on these developments. This collaboration stands as a testament to the strong bilateral relations and shared commitment to fostering economic growth and connectivity.
The increase in bilateral trade and FDI underscores the successful outcomes of the Cepa, demonstrating its effectiveness as a catalyst for economic cooperation and growth. As both countries continue to explore new avenues for collaboration, particularly in the realm of aviation, the goal of surpassing the $100 billion mark in non-oil trade by 2030 appears not only feasible but likely. This partnership exemplifies how strategic economic agreements and shared visions can lead to mutual prosperity and closer ties between nations.
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