Updated February 15th, 2024 at 12:25 IST

India, UAE confident of achieving $100 billion bilateral trade target ahead of target

PM Modi's visit to the Gulf region featured several engagements, including addressing an Indian diaspora event and participating in the World Government Summit.

Reported by: Business Desk
India-UAE trade relations | Image:PM Modi & UAE President Sheikh Mohamed bin Zayed
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India-UAE trade relations: India and the United Arab Emirates have expressed confidence in surpassing the $100 billion bilateral trade target well ahead of the previously set deadline of 2030. This comes amid the backdrop of Prime Minister Narendra Modi's visit to the UAE and the signing of the Comprehensive Economic Partnership Agreement (CEPA).

Prime Minister Narendra Modi & UAE President Sheikh Mohamed bin Zayed Al Nahyan

In a joint statement issued after extensive discussions between Prime Minister Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, the two leaders emphasised their commitment to bolstering economic ties and exploring new avenues for collaboration. Notably, the UAE stands as India’s third-largest trading partner for the year 2022-23 and holds the position of India’s second-largest export destination. Concurrently, India ranks as the UAE’s second-largest trading partner, with bilateral trade reaching $85 billion in the fiscal year 2022-23.

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The joint statement attributed this substantial growth to the implementation of the CEPA, which came into effect on May 1, 2022. Highlighting the significance of this agreement, both leaders expressed optimism about achieving the $100 billion trade milestone well before the scheduled year of 2030. They also hailed the formal establishment of the UAE-India CEPA Council (UICC) as a pivotal development in furthering bilateral trade partnerships.

During the discussions, the leaders underscored the signing of eight bilateral pacts, including crucial agreements such as the Bilateral Investment Treaty and the Inter-Governmental Framework Agreement on the India-Middle East-Europe Economic Corridor (IMEEC). Additionally, they lauded the progress made across various sectors, signaling a significant expansion of the bilateral partnership over the years.

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The energy sector emerged as a focal point of the discussions, encompassing areas such as oil, gas, and renewable energy. Both leaders acknowledged the recent signing of long-term LNG supply agreements between ADNOC Gas and Indian Oil Corporation Ltd and Gas Authority of India Ltd (GAIL), signaling the dawn of a new phase in energy cooperation between the two nations.

Furthermore, the joint statement highlighted the commitment to advancing cooperation in hydrogen, solar energy, and grid connectivity, underscoring the shared vision for sustainable energy solutions. The signing of the MoU in the field of Electricity Interconnection and Trade was also noted as a significant step towards enhancing energy cooperation, aligning with Prime Minister Modi’s One Sun One World One Grid initiative launched during COP26.

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Prime Minister Modi's visit to the Gulf region featured several engagements, including addressing a large Indian diaspora event and participating in the World Government Summit. Additionally, he inaugurated the UAE’s first Hindu stone temple, underscoring the multifaceted nature of the bilateral relationship between India and the UAE.

(With PTI inputs.)

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Published February 15th, 2024 at 11:13 IST