Context:

• India and the United Arab Emirates have significantly deepened their economic partnership under the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022.
• The two countries achieved their initial target of $100 billion in bilateral trade five years ahead of the 2030 deadline.
• Building on this momentum, leaders in January set a new and more ambitious goal of $200 billion in trade by 2032, underscoring the rapid growth and strategic importance of the India–UAE economic corridor.
• This article highlights how the India–UAE economic corridor has rapidly evolved into one of the most dynamic global partnerships, achieving $100 billion in trade ahead of schedule and now targeting $200 billion by 2032.

India–UAE Economic Corridor: Scale and Strategic Shift

• Rising Trade and Deep Economic Integration
  • India–UAE non-oil trade surged nearly 20% last year to reach $65 billion, signalling a partnership that has expanded far beyond energy.
  • Since 2000, UAE investments in India have crossed $22 billion, while Indian investments in the UAE exceed $16 billion.
  • Nearly five million Indians live and work in the UAE, strengthening economic ties and supporting over 1,200 weekly flights — one of the busiest air corridors globally.
• Shift Toward Advanced Sectors
  • The relationship is increasingly driven by advanced manufacturing, financial services, technology, and logistics:
    • Reliance Industries has partnered with TA’ZIZ on a $2 billion low-carbon chemicals project in Abu Dhabi.
    • Ashok Leyland has shifted electric bus production to the UAE.
    • Larsen & Toubro is leading a major solar-plus-storage project in Abu Dhabi.
    • Indian banks, tech firms, and healthcare companies are expanding their operational footprint in the Emirates.
  • These represent long-term industrial commitments rather than exploratory ventures.
• Strong Reverse Investment Flows
  • UAE investments in India are equally robust:
    • DP World has pledged an additional $5 billion for Indian infrastructure.
    • Emirates NBD acquired a majority stake in RBL Bank, marking a landmark FDI in Indian banking.
    • ADNOC signed multi-billion-dollar LNG supply agreements with Indian oil companies.
    • Mubadala has invested over $4 billion in Indian healthcare, renewables, and technology.
    • Abu Dhabi Investment Authority (ADIA) established a base in India’s GIFT City.

India–UAE Partnership: Built for the Long Term

• Trust and Policy Foundations
  • The deepening India–UAE economic relationship is anchored in decades of trust, strong diaspora ties, and a robust policy framework.
  • The CEPA removed tariffs on nearly 90% of tariff lines, while the 2024 Bilateral Investment Treaty and a new strategic defence partnership provide long-term certainty for businesses and investors.
• Expanding Into Third Markets
  • The partnership is now extending beyond bilateral trade.
  • The upcoming Bharat Mart in the UAE will function as a wholesale hub for Indian goods targeting Africa, West Asia, and Eurasia, aiming to significantly boost exports.
  • Both countries are also exploring joint digital infrastructure and capacity-building initiatives in Africa, transforming the corridor into a platform for global economic outreach.
• AI as the Next Frontier
  • Artificial intelligence is emerging as the next major area of collaboration.
  • India’s hosting of the AI Impact Summit 2026 in New Delhi signals its growing leadership in AI governance and innovation.
  • The UAE, a pioneer in institutional AI adoption, is a natural partner.
  • Both nations are exploring cooperation in advanced computing, data centres, and AI-driven innovation, recognising that future technological leadership will depend on strategic partnerships rather than isolated growth.

India–UAE Partnership: The Next Chapter of Global Expansion

• India’s Global Economic Moment
  • India, now the world’s fourth-largest economy with a GDP of around $4 trillion, is entering a decisive global phase.
  • Driven by entrepreneurial dynamism, manufacturing growth, and world-class digital infrastructure, Indian businesses are increasingly focused on international expansion.
  • The question is no longer whether Indian enterprises will go global, but how effectively strategic corridors can accelerate that ambition.
• Wider Strategic Realignment
  • The India–UAE partnership is part of a broader geopolitical and economic convergence.
  • The recent Delhi Declaration between India and Arab Foreign Ministers sets out an ambitious roadmap for cooperation through 2028, spanning politics, trade, energy, technology, and security.
  • The India–UAE corridor stands at the forefront of this realignment.
• Beyond Trade: Deep Economic Integration
  • Having achieved $100 billion in trade ahead of schedule, the partnership now moves into a deeper phase.
  • The next chapter will be defined not just by higher trade volumes, but by greater integration of capital, technology, infrastructure, and strategic interests.