India-UAE Economic Partnership: Strengthening Ties Beyond Trade

Created On: November 13, 2024
India, Newsletter, U.A.E.

Modified On: January 12, 2026

Share

In recent years, particularly after the pandemic of 2020, India and the UAE have entered into a strategic partnership that strengthened their ties beyond trade. These two nations share mutual business interests in key sectors like critical minerals, defence, and energy. The bilateral ties between India and the UAE have bolstered trade and fostered significant flow of investments. Currently, the UAE is positioned as one of the top ten investors in India. The Abu Dhabi Investment Authority (ADIA), which is among the largest sovereign wealth funds in the world, has diversified its portfolio in India. Currently, it spans sectors like aviation, telecommunications, and technology.

On the other hand, Indian firms are looking to capitalize on lucrative investment opportunities in UAE. With India on its side, the UAE has a reliable partner in both security and technology. This interdependence is maturing into a strategic partnership that extends from traditional trade and cooperation on energy to new sectors like defense, space exploration, education, and climate initiatives.

Landmark Agreement on Civil Nuclear Cooperation

The two countries reached a historic milestone when they signed an MoU for civil nuclear cooperation. The deal was signed between India’s Nuclear Power Corporation (NPCIL) and the Emirates Nuclear Energy Corporation (ENEC). In September 2024, this deal was formally signed, and its objective is to deepen collaboration in nuclear energy. It was signed during the visit of Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi to India.

This partnership matured on the basis of previous discussions initiated back in 2015. Both the countries committed to use nuclear energy peacefully in fields like agriculture and safety. The UAE is expanding its investments in nuclear energy, which reflects a long-term vision for its shared scientific and technological advancements.

Main Investment Avenues for India-UAE Collaboration

Here are the key avenues for collaboration between India and the UAE.

1. Multilateral Initiatives and Economic Integration

The India-UAE partnership has expanded through multilateral platforms like the India-Israel-UAE-US (I2U2) grouping. It focuses on critical areas like food and water security. Interestingly, the UAE has committed $2 billion to India’s food parks to address regional food requirements. This partnership in the India-Middle East-Europe Economic Corridor (IMEC) will boost the trade infrastructure further.

2. Trilateral Engagements

Both countries actively participate in international forums like BRICS, the United Nations, and the UAE-France-India trilateral initiative. The UFI (UAE-France-India) collaboration, launched in 2022, focuses on joint projects, particularly in renewable energy fields like solar and nuclear energy.

3. New Agreements in Energy and Logistics

In 2024, India and the UAE signed additional some other to strengthen their energy ties. These include a long-term LNG supply arrangement between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation and a strategic partnership with India’s Petroleum Reserves.

Moreover, the UAE has shown significant interest in supporting India’s food infrastructure. As part of the I2U2 mission, they have made specific investments to develop food parks in Gujarat and Madhya Pradesh.

4. The Role of the UAE in Shaping India’s Energy Sector

The UAE plays a critical role in strengthening India’s security. It is one of the primary oil suppliers and a partner in India’s Strategic Petroleum Reserve (SPR) program. As of 2017, the UAE became the first country to store crude oil in India’s SPR facilities, which was a significant milestone. Besides fossil fuels, the countries are focusing on collaborating in renewable sectors like green hydrogen and solar energy. This strategic initiative corresponds with India’s push towards clean energy sources.

The India-GCC Partnership – Boosting Regional Relations

In September 2024, India participated in the first-ever GCC Foreign Ministers’ meeting in Riyadh. External Affairs Minister S. Jaishankar highlighted India’s role as one of the largest energy consumers in the world. This strategic dialogue reflects India’s ambition to enhance its regional economic environment.

A Legacy of Trade Between the UAE and India

The India-UAE trade partnership dates back centuries, to the time when basic goods like dates and pearls were traded. Over the years, the UAE has emerged as a global trading hub. India’s economic liberation in the 1990s intensified trade, which reached $83.65 billion in 2023-24. Thanks to the Comprehensive Economic Partnership Agreement (CEPA) of 2022, trade barriers have been reduced, fueling more investments.

Trade Statistics (in US$ Million)

Year	2019-20	2020-21	2021-22	2022-23	2023-24
India’s Export to UAE	28,853.59	16,679.54	28,044.88	31,608.79	35,625.02
India’s Import from UAE	30,256.65	26,622.99	44,833.48	53,231.55	48,025.58

Year	2019-20	2020-21	2021-22	2022-23	2023-24
Total Trade Volume	59,110.23	43,302.53	72,878.36	84,840.34	83,650.60

Key Commodities: India’s Export and Import Profile

India’s exports to the UAE are diverse. It includes mineral oils, precious metals, gemstones, machinery, textiles, and food items. On the other hand, the primary imports of India from the UAE include crude oil, jewelry, plastics, and machinery. Currently, the UAE is the fourth-largest oil supplier of India, which makes it a strategic partner to ensure India’s energy security.

Table showing Top Exports of India to the UAE

India’s Top Exports to UAE	2022-23	2023-24
Mineral Fuels & Oils	8,681.78	8,236.64
Precious Stones & Metals	5,772.47	8,043.08
Electrical Machinery	3,650.03	3,538.86
Nuclear Reactors & Machinery	1,074.13	1,363.65

Table showing Top Imports of India from the UAE

Commodity	2022-2023 (US$ Million)	2023-2024 (US$ Million)
Natural or cultured pearls, precious stones, jewelry, coins	14,788.04	20,109.77
Mineral fuels, mineral oils, bituminous substances	27,704.95	17,628.89
Plastic and articles thereof	1,700.46	1,664.70
Aircraft, spacecraft, and parts	1,881.98	1,175.53
Salt, sulfur, earths, and stone	948.23	993.94
Iron and steel	1,071.15	674.47
Tanning or dyeing extracts, pigments, paints, inks	22.81	659.31
Ships, boats, and floating structures	647.37	639.38
Aluminum and articles thereof	509.37	529.79
Copper and articles thereof	454.82	527.59
Nuclear reactors, boilers, machinery	306.88	481.48
Electrical machinery, sound recorders, and parts	479.60	323.11
Fertilizers	376.72	308.33

Strengthening Trade in Local Currencies

Over the years, investors investing in Top sectors in Dubai from India have increased significantly. In July 2023, India and the UAE signed an MoU for a Local Currency Settlement (LCS) system to further streamline cross-border transactions. This significantly reduces their dependency on third-party currencies. This system is managed by the Central Bank of the UAE and the Reserve Bank of India. It marks a progressive step toward deeper economic integration.

Conclusion

The partnership between India and the UAE is multifaceted. It extends well beyond trade and encompasses investments in energy, technology, food security, and defense. This bilateral relationship is set to flourish with new agreements and evolving trade mechanisms like the LCS. Indian investors looking to expand their operations in Dubai can reach out to the IMC Group as their strategic advisory partner. The professional team of consultants assists businesses in setting up their companies in the UAE and complying with the legalities for seamless operations.

Expand your business faster with our Global Capability Center

Global Entity Management is more than compliance

Let’s build the full structure right

Cross-Border Succession Planning for UAE Family Businesses

Don’t rely on assumptions

Conduct Due Diligence across HR, financial, and operational areas.

Your Vision, Our Mission.
Let's Discuss.

Entity Management

International Expansion

Company Formation

Global Mobility Services

Tax & Statutory Accounting

Family Business

Trust and Foundation Formation

Lifestyle & Luxury Asset Management

Succession Planning Services

Private Company Services

Treasury Services

Accounting Services & Regulatory Reporting

CFO

Global Capability Center(GCC)

Accounting

Outsourcing

Due Diligence

India-UAE Economic Partnership: Strengthening Ties Beyond Trade

Landmark Agreement on Civil Nuclear Cooperation

Main Investment Avenues for India-UAE Collaboration

The India-GCC Partnership – Boosting Regional Relations

A Legacy of Trade Between the UAE and India

Key Commodities: India’s Export and Import Profile

Strengthening Trade in Local Currencies

Conclusion

Cross-Border Succession Planning for UAE Family Businesses

India’s Labour Code Rollout Is Now Moving Beyond Announcements

India Moves OCI Fully Online Under Citizenship (Amendment) Rules, 2026

Your Vision, Our Mission. Let's Discuss

Get Started

About

Our Offices

Your Vision, Our Mission.
Let's Discuss