UAE-India Comprehensive Economic Partnership Agreement Celebrates Third Anniversary: A Strengthening Alliance Boosting Trade, Investment, and Development

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and India, signed in February 2022 and implemented in May 2022, has proven to be a significant catalyst for economic growth and strategic collaboration between the two nations.

Key Achievements

Since its implementation, the CEPA has delivered numerous key achievements, transforming the economic landscape between the UAE and India.

Trade Boom: The bilateral trade surpassed $100 billion by early 2025, marking a significant increase from $60 billion pre-CEPA, and is projected to grow further to this level within five years [1][3][5].
Economic Gains: CEPA is estimated to have added 0.7% to India’s GDP and 1.7% to UAE’s GDP, ushering notable economic gains in a short span [1].
Export Leader: India became the UAE’s top non-oil export destination in 2024, recording a 75.2% year-on-year growth in exports [2].
Duty-Free Imports: The agreement provides duty-free imports for crucial sectors such as food products, textiles, gems, jewellery, and pharmaceuticals into the UAE, and reduced import duties on petrochemicals and dates from the UAE to India [1].
Labor Mobility: CEPA has enabled easier access for Indian professionals in UAE’s high-skill sectors, promoting labor mobility [1].
Sectoral Growth: The agreement has supported growth in key sectors including agriculture, medical equipment, pharmaceuticals, textiles, leather, gems and jewellery, and other labor-intensive industries [1][5].
Innovation and Integration: Facilitated deeper economic interdependence through innovations like local currency trade settlements, interlinked payment systems, and initiatives in AI, nuclear energy, food parks, and critical minerals [3].
Digital Initiatives: Launched initiatives such as the Virtual Trade Corridor (VTC) and the MAITRI platform to promote paperless trade and integrated trade portals between the two countries [3].
Empowering SMEs: The CEPA has empowered small and medium enterprises (SMEs) and promoted joint ventures and entrepreneurship on both sides [5].
Sovereign Wealth Fund Investments: Strong sovereign wealth fund investments from UAE into India’s infrastructure, logistics, renewables, and digital platforms, balanced by Indian investments into the UAE’s economy [5].

Future Prospects

Looking ahead, both countries have outlined a long-term vision for deepening the Comprehensive Strategic Partnership aiming to enhance collaboration for the next 50 years following their 50th anniversary of diplomatic ties in 2022 [2].

Trade Growth: The CEPA is expected to continue driving trade growth, potentially expanding bilateral trade well beyond $100 billion.
Regional Connectivity: The India-Middle East-Europe Corridor (IMEEC) is a transformative initiative involving the UAE and India, aiming to enhance regional trade, connectivity, and economic integration across the Middle East, Africa, and Europe [3].
Expanded Cooperation: Expanded cooperation in emerging sectors, including fintech, space, education, food security, emerging technologies, and renewables [5].
UAE as a Gateway: The UAE’s role as a gateway for exports to Africa, Gulf and East Asia markets is expected to grow, further leveraging India-UAE trade links [1][5].
Political Leadership: Continued strong political leadership and trust between India and the UAE are foundational to maintaining a resilient, people-centric, and future-ready partnership [5].

In conclusion, the CEPA has quickly advanced economic ties, created substantial trade and investment flows, and catalyzed strategic collaboration, positioning it as a major pillar for sustained bilateral growth and regional connectivity in the future. The CEPA has become a cornerstone of the dynamic relationship between the UAE and India.

The Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and India has led to significant collaboration in sectors like agriculture, medical equipment, pharmaceuticals, textiles, and other labor-intensive industries.
With strong sovereign wealth fund investments from the UAE into India’s infrastructure, logistics, renewables, and digital platforms, the CEPA has empowered small and medium enterprises (SMEs) and promoted joint ventures and entrepreneurship.
Looking forward, the CEPA is projected to continue driving trade growth, potentially expanding bilateral trade well beyond $100 billion, and the India-Middle East-Europe Corridor (IMEEC) is a transformative initiative that aims to enhance regional trade, connectivity, and economic integration across the Middle East, Africa, and Europe.
To maintain a resilient, people-centric, and future-ready partnership, continued strong political leadership and trust between India and the UAE are foundational, with the UAE's role as a gateway for exports to Africa, Gulf, and East Asia markets expected to grow, further leveraging India-UAE trade links.