India and the UAE made a milestone in their strategic economic bond. In 2022, while signing the Comprehensive Economic Partnership Agreement (CEPA), both countries targeted $100 billion in bilateral trade by 2030. But now this deal has reached five years ahead of the initial schedule.
In January 2026, the leaders set a new target of $200 billion by 2032. Notably, today, there are few economic corridors in the world that are moving at a similar pace and level of ambition as this one.
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So, what does the strengthening of CEPA mean for both India and the UAE? The India–UAE economic relationship is based on decades of strong diaspora ties, trust, and secure policy frameworks. Since 2000, UAE investments in India have totaled more than $22 billion. Similarly, the Indian investments in the UAE crossed $16 billion.
Last year, the India–UAE energy trade surged by nearly 20% to $65 billion. Thus, highlighting a collaboration that has expanded beyond energy. Almost five million Indians are living and working in the UAE. This has eventually led to a strong economic bond. This tie also supports over 1,200 weekly flights. Globally, the India-UAE air corridor is among the busiest.
The 2024 Bilateral Investment Treaty and a new strategic defence partnership created a long-term platform for investors and businesses. The CEPA also removed tariffs on around 90% of tariff lines.
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The partnership between India and the UAE is now extending beyond bilateral trade. Big tech firms, Indian banks, and healthcare companies are building their operations in the Emirates.
Recent reports suggest that the upcoming Bharat Mart in the UAE will serve as a wholesale hub for Indian goods. The aim is to boost exports in West Asia, Africa, and Eurasia. Other areas that are expected to benefit from this deal include the following:
India and the UAE are exploring capacity-building initiatives and digital infrastructure in Africa. Thus, upgrading the corridor to a pathway for global economic outreach
The collaboration is now driven by logistics, financial services, advanced manufacturing, and technology.
Ashok Leyland has started electric bus production in the UAE.
In Abu Dhabi, Reliance Industries and TA’ZIZ have collaborated for a $2 billion low-carbon chemicals project.
An important solar-plus-storage project in Abu Dhabi is now headed by Larsen & Toubro.
Moreover, the relationship between India and the UAE is taking a turn towards boosting economic growth of both countries. This shift will eventually create opportunities for jobs and future development.