The CEPA (Comprehensive Economic Partnership Agreement) between India and UAE, which came into force on May 1, 2022, has given a significant boost to bilateral trade between India and UAE. While in 2021-2022, bilateral trade between both countries was estimated at $72.9 billion in 2022-2023, bilateral trade between India and UAE was estimated at $84.5 billion (both countries are aiming to lift bilateral trade to $100 billion USD via the CEPA). Some of the key sectors which have witnessed a rise in exports from India are; Gems & Jewellery, agri-products and automobiles. Total direct investments of UAE in India are estimated at 17 billion as of September 2023. India’s investments in UAE are estimated at $8 billion.
UAE Minister of Economy, Abdulla bin Touq Al Marri, who visited Tamil Nadu with a 30-member delegation to attend the ‘Investopia Global Talks’ in Chennai, acknowledged the rise in trade as well as the increasing investments.
Several Indian state governments have also been reaching out to the UAE and are seeking to benefit from the CEPA. In recent years, several Chief Ministers Kerala CM Pinari Vijayan (2022), then Haryana CM Manohar Lal Khattar (October 2022), then Odisha CM Naveen Patnaik (June 2022) and current Tamil Nadu Chief Minister MK Stalin (March 2022).
West Bengal Chief Minister, Mamata Banerjee had also visited UAE, in October 2023 and highlighted the close economic linkages between both countries during her visit. Banerjee met with UAE minister of state for foreign trade Thani bin Ahmed Al Zeyoud and a Lulu Group International delegation.
Several high-level delegations from UAE have visited India. In January 2024, President of the United Arab Emirates, His Highness Sheikh Mohamed bin Zayed Al Nahyan visited India and attended the Vibrant Gujarat Global Summit (this was the 10th edition of the Summit).
UAE’s envoy to India, Abdulnasser Alshaali has also been interacting closely with state governments with the objective of giving a push to economic linkages.
It would be pertinent to point out, that UAE set up its fourth consulate in India in Hyderabad (capital of Telanagana), in May 2023. This would benefit not just people to people linkages between both countries but also economic ties.
UAE Minister’s meeting with Tamil Nadu CM
Abdulla bin Touq Marri met with senior officials including CM MK Stalin.
“Tamil Nadu is one of the biggest states that we are focusing on, in the UAE. We are coming with a delegation of more than 30 members from the business community of the UAE, building a relationship specifically here in Tamil Nadu, Chennai and the region beyond the region as well.”
MK Stalin on his part welcomed the UAE Minister and is supposed to have discussed a host of issues. In a tweet, the Tamil Nadu Chief Minister said
“..we discussed business and investment partnerships in sectors such as logistics, retail, affordable housing, and food processing, with a particular focus on MSMEs and job creation”
Expansion of ties UAE’s economic and people to people links have strengthened significantly in recent years and are no longer restricted to a particular sphere. Several of India’s states are seeking to benefit from the CEPA signed between both countries.
Growing India-UAE links in the sphere of agriculture
One important area of cooperation between India and UAE is agriculture. UAE has committed to setting up three food parks in India (in the states of Haryana, Gujarat and Madhya Pradesh), at an estimated cost of $2 billion, with the aim of addressing the issue of food security (both countries had also agreed to set up a food corridor). Other important steps taken to promote agricultural cooperation between both countries are the interest being shown by UAE companies in Indian agricultural start-ups, which are investing heavily, and the setting up of an agri-trading platform –‘agriota’ which provides Indian farmers an opportunity to connect with the food industry in UAE. Maharashtra, an important agricultural state, is seeking to set up a trade corridor with UAE. The state of Punjab has also been pushing for close linkages between UAE and India in the sphere of agriculture and food processing.
In conclusion, the India-UAE relationship is only likely to strengthen with growing synergies between both countries. India’s state governments are likely to emerge as important stakeholders and the visit of the UAE Minister of Economy to the state of Tamil Nadu is a strong reiteration of the same. It is important for state governments to tap opportunities arising out of the CEPA as well as growing synergies between India and UAE in the sphere of agriculture, which will benefit both countries.
