Under which agreement does India aim to reach $100 billion in non-oil trade with the UAE?

India and the United Arab Emirates (UAE) signed the Comprehensive Economic Partnership Agreement (CEPA) on 18 February 2022, during the India-UAE Virtual Summit. Under the India-UAE CEPA, which came into force on 1 May 2022, both countries have agreed to boost trade to $100 billion by 2030.

As India-UAE CEPA completed four years on 18 February 2026, Union Commerce and Industry Minister Piyush Goyal said that the agreement has opened new sectoral opportunities and further reinforced India's position as a credible global trade hub.

Posting on the social platform X, he said, "Stronger together. Four years ago, under the decisive leadership of PM Narendra Modi, India and the UAE signed the transformative India-UAE CEPA, marking the beginning of a new chapter in our economic partnership."

Highlighting the positive outcomes of the agreement, he added further, "This agreement has created a ripple effect of progress across manufacturing, services, and agriculture, benefiting exporters, supporting MSMEs, strengthening agri-exports, and providing our farmers with access to premium global markets."

Stronger Together 🇮🇳🤝🇦🇪

Four years ago, under the decisive leadership of PM @NarendraModi ji, India and the UAE signed the transformative #IndiaUAECEPA, marking the beginning of a new chapter in our economic partnership.

This agreement has created a ripple effect of progress… pic.twitter.com/batlIpPeco

— Piyush Goyal (@PiyushGoyal) February 18, 2026

4 Years of India-UAE CEPA: Key Developments (FY 2024-25)

As per the post shared by the Union Commerce and Industry Minister Piyush Goyal, four years of India-UAE CEPA have yielded the following key developments in FY 2024-25:

• Bilateral trade crossed historic $100 billion milestone
• India's merchandise exports reached $36.63 billion
• Non-oil trade reached approximately $68 billion
• Sectors for exports, particularly gems and jewellery, pharmaceutical, agriculture, marine, textiles, and engineering goods showed strong performance
• Strong services exports reflect a growing digital and knowledge-based engagement
• Bharat Mart expected to institutionalise India's export presence in West Asia
• Foreign Direct Investment (FDI) inflows from UAE grown nearly 75 per cent post-CEPA
• UAE currently ranks as India's 7th largest investor

What is India-UAE CEPA agreement?

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is a landmark bilateral trade pact. It is the first deep and full-fledged Free Trade Agreement (FTA), India has signed with any country in the last decade.  

It was signed on 18 February 2022, and came into effect on 1 May 2022. The agreement aims to increase bilateral trade in goods to $100 billion and trade in services to $15 billion within five years of signing.

The agreement covers:

• Trade in Goods
• Rules of Origin
• Trade in Services
• Trade Remedies
• Technical Barriers to Trade (TBT)
• Sanitary and Phtosanitary (SPS) measures
• Dispute Settlement
• Movement of Natural Persons
• Telecom
• Customs Procedures
• Pharmaceutical products
• Government Procurement
• Intellectual Property
• Investment
• Digital Trade
• Small and Medium Enterprises (SMEs including micro-enterprises)
• Cooperation in other areas

The agreement benefits India from the reduction or elimination of tariffs on its exports to the UAE, especially sectors such as gems and jewellery, textiles, footwear, sports goods, leather, furniture, engineering products, plastics, agricultural and wood products, automobiles, and medical devices. 

India-UAE Bilateral Relations  

India and the UAE have shared diplomatic ties since the 1970s, but the relations transitioned into a 'Comprehensive Strategic Partnership' after the Indian PM's 2015 visit. India's 3rd largest trading partner and 2nd largest export destination is the UAE. Both countries are part of the I2U2 grouping. 

General Knowledge Flashcard Questions with Answers On India-UAE Bilateral Relations