UAE’s Non-Oil Trade Surges, Bolstering India Ties

Abu Dhabi’s non-oil foreign trade has recorded a 34.7% increase in the first half of 2025, reaching $53.2 billion, with India emerging as a key partner. This growth, driven by robust exports and re-exports, highlights the UAE’s diversification efforts and its strategic trade agreements with India. The recently inked India-UAE trade deal has facilitated a surge in Indian electronics and pharmaceutical exports, while the UAE is investing heavily in India’s renewable energy and infrastructure sectors. This partnership is poised to strengthen bilateral trade, valued at $85 billion annually.

The UAE’s advanced infrastructure and streamlined trade systems have made it an attractive hub for Indian exporters seeking to bypass U.S. tariff barriers. India’s Commerce Ministry is leveraging this relationship to promote “Brand India” through joint ventures in technology and healthcare. The UAE’s investments in India’s solar and wind energy projects are expected to create thousands of jobs, supporting India’s $100 billion FDI target. Both nations are also exploring digital trade initiatives, including UPI integration, to enhance financial connectivity.

This trade surge underscores the UAE’s role as a logistics and investment hub for India, particularly in a protectionist global environment. As India diversifies its export markets, the UAE’s strategic location and economic stability offer significant opportunities. The success of this partnership could inspire similar agreements with other GCC countries, reinforcing India’s position in global trade. By capitalizing on these ties, India aims to achieve sustainable economic growth and regional influence.