Golden Age beckons

Golden Age beckons

The CEPA heralds a new era in the UAE-India relationship by boosting trade ties and cutting import duties that will benefit both nations

By Shailendra Ranjan Published: Thu 24 Feb 2022, 10:20 AM Last updated: Thu 24 Feb 2022, 10:22 AM

India and the UAE established diplomatic ties in 1972 with the setting up of the UAE’s embassy in New Delhi. India reciprocated by opening its embassy in Abu Dhabi in 1973. However, the relationship between the two predates this — their trade links date back centuries. Initially, the trade was dominated by commodities such as dates, fish, and pearl. Subsequently, hydrocarbons entered the picture with the discovery of oil and the start of its export by Abu Dhabi in 1962. In the 1970s, UAE-India trade grew to around $80 million per year.

Trade between the UAE and India increased significantly in the 1990s when the UAE became a major regional trading hub and India embarked on its landmark economic reforms. UAE-India trade rose to a staggering $60 billion in 2020. The UAE is now India’s third-largest trading partner, while India is the UAE’s second largest after China.

The following key facts explain the strong trade and economic relations between UAE and India:

The UAE