India–UAE Trade Crosses $100 Billion as Strategic Cooperation Expands Across Energy, Defence and Technology

India and the United Arab Emirates have crossed a major economic milestone, with bilateral trade exceeding $100 billion as the two countries deepen their Comprehensive Strategic Partnership. The achievement reflects expanding commercial exchanges, growing investments and closer cooperation in strategically important sectors.

External Affairs Minister Dr. S. Jaishankar highlighted the milestone during his meeting with UAE Deputy Prime Minister and Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan in Mumbai on 20 October 2026. He described the economic relationship as an important example of the progress achieved through sustained engagement between the two countries.

The expansion follows the implementation of the India–UAE Comprehensive Economic Partnership Agreement (CEPA), which has provided a framework for strengthening bilateral trade and creating new opportunities for businesses in both countries.

India–UAE CEPA Drives Bilateral Trade Beyond $100 Billion

The India–UAE Comprehensive Economic Partnership Agreement has emerged as a central pillar of the expanding economic relationship. Signed in February 2022 and implemented in May 2022, the agreement aims to facilitate trade through preferential market access, streamlined procedures and stronger commercial cooperation.

Speaking in Mumbai, Jaishankar said bilateral trade had crossed the $100 billion mark since the signing of CEPA. He noted that the partnership continued to establish new benchmarks despite global economic uncertainties and regional challenges.

The agreement has created opportunities for Indian exporters across several industries, including engineering goods, textiles, gems and jewellery, pharmaceuticals and agricultural products. It has also strengthened the UAE’s position as an important commercial partner and trading gateway for Indian businesses seeking access to international markets.

Beyond merchandise trade, the broader economic partnership supports cooperation in services, investment and commercial infrastructure. The growing relationship provides a foundation for deeper integration between the two economies.

Investment Flows Reflect Growing Economic Confidence

The External Affairs Minister highlighted increasing two-way investment as another important indicator of the partnership’s development. He observed that businesses in India and the UAE were demonstrating growing confidence in each other’s economies.

The UAE has emerged as an important investment partner for India, with cooperation extending across infrastructure, logistics, energy, manufacturing and financial services. Indian enterprises have also expanded their commercial presence in the Emirates, benefiting from its established trading networks and international business ecosystem.

The economic relationship increasingly extends beyond traditional trading activities. Investment cooperation is creating opportunities for long-term industrial partnerships, infrastructure development and collaboration in emerging technologies.

The two countries’ complementary economic capabilities provide considerable scope for expanding these activities. India’s manufacturing base, technological expertise and large domestic market align with the UAE’s investment capabilities, logistics infrastructure and international commercial connections.

Defence, Energy and Technology Cooperation Gains Strategic Importance

India and the UAE are expanding their partnership into areas that contribute directly to long-term economic security and technological development.

Jaishankar noted that cooperation in defence, energy and technology was acquiring an increasingly strategic character. These sectors have become important components of the relationship alongside established commercial and investment activities.

Energy cooperation remains particularly significant because of the UAE’s role as a major supplier of energy resources and India’s position as one of the world’s largest energy consumers. Their engagement supports energy security while creating opportunities for cooperation in newer energy technologies.

Defence cooperation contributes to bilateral security engagement and provides opportunities for institutional exchanges and closer collaboration between the two countries.

Technology has also become an expanding area of partnership. India’s digital capabilities, research ecosystem and growing innovation sector offer opportunities for cooperation with the UAE’s investments in advanced technologies and economic diversification.

Together, these areas demonstrate how the India–UAE relationship is developing into a broader partnership encompassing economic growth, technological progress and strategic cooperation.

India and UAE Emphasise Stability in the Gulf Region

Regional developments formed an important part of the discussions between the two foreign ministers. Jaishankar expressed concern over the prevailing situation in the Gulf and reiterated India’s support for resolving regional challenges through dialogue and diplomacy.

He emphasised the importance of maintaining the uninterrupted movement of international commerce, particularly essential supplies such as energy and fertilisers.

The Gulf occupies a central position in global energy markets and maritime trade. Major shipping routes through the region connect energy-producing countries with markets across Asia and other parts of the world.

For India, regional stability is closely connected with energy security, commercial activity and the welfare of Indian citizens living and working in Gulf countries.

India and the UAE reaffirmed their commitment to supporting diplomatic efforts that encourage stability and protect legitimate international trade.

High-Level Exchanges Strengthen the Comprehensive Strategic Partnership

Jaishankar described 2026 as a year of intensive engagement between the leadership of India and the UAE. Several high-level visits and interactions have strengthened diplomatic coordination and provided fresh momentum to bilateral cooperation.

UAE President Sheikh Mohamed bin Zayed Al Nahyan visited India in January 2026, continuing the tradition of close engagement between the two governments.

Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan also participated in major international events hosted by India, including the AI Impact Summit in February and the 18th BRICS Summit.

Prime Minister Narendra Modi undertook his eighth visit to the UAE in May 2026, further reinforcing the importance both countries attach to their bilateral relationship.

These exchanges have helped maintain cooperation across a broad range of areas, including trade, investment, technology, energy and strategic engagement.

The sustained interaction between the two leaderships reflects the increasingly comprehensive nature of the partnership.

Indian Community Strengthens Bilateral Relations

People-to-people relations remain an important foundation of India–UAE cooperation. The UAE hosts a substantial Indian community that contributes to its economy and maintains strong cultural, commercial and family connections with India.

During the Mumbai meeting, Jaishankar thanked the UAE leadership for its continued attention to the welfare of Indian citizens residing in the Emirates.

The Indian community contributes across sectors ranging from business and technology to healthcare, education, engineering and professional services. Its presence also strengthens cultural exchanges and business relationships between the two countries.

Alongside economic and strategic engagement, these connections give the partnership a strong social and cultural dimension.

India–UAE Partnership Enters a New Phase of Economic Cooperation

The crossing of the $100 billion bilateral trade milestone demonstrates the growing economic importance of the India–UAE relationship. The Comprehensive Economic Partnership Agreement has provided a strong institutional foundation for expanding commercial engagement, while rising investment flows are strengthening long-term business confidence.

The partnership now extends across defence, energy, technology, infrastructure and regional security, supported by frequent high-level diplomatic exchanges and strong people-to-people relations.

As India continues to expand its manufacturing capabilities, digital economy and international trade partnerships, the UAE will remain an important partner in connecting Indian businesses with global markets.

The continuing development of the Comprehensive Strategic Partnership is expected to create wider opportunities for investment, technological cooperation and mutually beneficial economic growth.

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References

1. DD News, Prasar Bharati, Government of India — 20 October 2026. India–UAE Trade Crosses $100 Billion; EAM Jaishankar Calls for Dialogue on Gulf Situation.
   https://ddnews.gov.in/en/india-uae-trade-crosses-100-billion-eam-jaishankar-calls-for-dialogue-on-gulf-situation/
2. Department of Commerce, Ministry of Commerce and Industry, Government of India. India–UAE Comprehensive Economic Partnership Agreement.
   https://commerce.gov.in/
3. Ministry of External Affairs, Government of India. India–UAE Bilateral Relations and Comprehensive Strategic Partnership.
   https://www.mea.gov.in/

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