Updated March 3rd, 2024 at 19:34 IST

India and UAE's $100 billion target in non-oil trade by 2030 ambitious, but achievable: CII

India is now UAE's top non-oil trading partner, with the bilateral trade between the two nations having already touched $84.9 billion in 2022-23

Reported by: Business Desk
CII President R Dinesh | Image:CII
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India and UAE's target for reaching $100 billion in non-oil trade by 2030 is ambitious, but achievable as huge business opportunities await the two nations in sectors such as  textiles, jewellery and pharma, according to CII President R Dinesh.

The free trade agreement between India and the UAE, implemented in 2022, has resulted in a surge in bilateral trade and investments, he said.

The World Trade Organisation event in Abu Dhabi, as part of the global investors' event 'Investopia' and various bilateral meetings, also saw participation from several others as part of the Ministerial Conference.

"The target to achieve $100 billion in non-oil trade between India and UAE is ambitious but I do believe that it is achievable and recent developments are encouraging in this regard," the CII president was quoted as saying in the event.

The agreement, which is officially called the Comprehensive Economic Partnership Agreement (CEPA), incorporates duty-free access to all labour-intensive sectors such as gems and jewellery, textiles and apparel, leather, pharmaceuticals, medical devices, and many engineering products.

Bilateral trade as part of the agreement has already touched $84.9 billion in 2022-23, with India becoming UAE's topmost non-oil trading partner.

"India's vast consumer base and growing manufacturing capabilities offer an attractive market for UAE goods, while the UAE's status as a global trade hub facilitates Indian export access to international markets," he said.

The United Arab Emirates supplies crude oil to India and is a major supplier, with oil shipments accounting for a larger chunk of bilateral trade between the two nations.

"This agreement is a game-changer, offering opportunities for businesses in services ranging from telecommunications, construction and development, education, environment, financial sector, health services, tourism and films, hospitality, and maritime and air transport services, among others," he added.

He said the pact paves way for companies in both India and UAE to come together and become a part of global supply chains, thereby encouraging manufacturing in both the nations.

"Notably, FDI (foreign direct investment) from the UAE to India has more than tripled, reaching $ 3.35 billion in 2022-23. In our discussions, I find that we are well positioned to leverage this for 'Make in India' and 'Made in Emirates' to work hand in hand," Dinesh said.

Joint veutures and technology transfers would elevate production, thereby diversifying and adding value, he added.

"Streamlining logistics, promoting cross-border e-commerce, and supporting startups will further boost trade dynamics," he said, adding that collaborations in sustainable industrial development, technology transfer, and energy security is imperative. There are also enticing opportunities for UAE firms in India's energy, regional connectivity, and maritime sectors.

Other areas where good opportunities are present for UAE investors include healthcare and education.

Cooperation in energy security and trade, particularly in areas of green hydrogen and energy storage, pose an advantage for India, especially as UAE plays a significant role in crude and LPG.

"Advancements in fintech collaboration, exemplified by the acceptance of the RuPay card in the UAE, underscore the commitment to this partnership," he said.

(With PTI Inputs)
 

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Published March 3rd, 2024 at 19:34 IST