The UAE-India corridor is sparking a growth story, Pg6

Key Highlights:

• The UAE-India CEPA trade target of $100 billion by 2030 was achieved five years early.
• A new trade target of $200 billion by 2032 has been set by leaders in January 2026.
• Non-oil trade grew nearly 20% last year, reaching $65 billion.
• UAE entities have invested over $22 billion in India since 2000, while Indian companies invested over $16 billion in the UAE.
• Nearly five million Indian nationals reside in the UAE.
• Bharat Mart, under construction in the UAE, will serve as a wholesale hub for Indian goods targeting Africa, West Asia, and Eurasia.

India-UAE CEPA

Detailed Insights:

• The UAE-India corridor is evolving beyond energy to include advanced manufacturing, financial services, technology, and logistics.
• Reliance Industries has partnered with TA’ZIZ on a $2 billion investment in low-carbon chemicals in Abu Dhabi.
• Ashok Leyland relocated its electric bus production from the UK to the UAE, and Larsen & Toubro is a preferred contractor for a solar-plus-storage project in Abu Dhabi.
• DP World has committed an additional $5 billion to Indian infrastructure, expanding its port and logistics network.
• Emirates NBD acquired a majority stake in RBL Bank, marking the largest FDI in Indian banking history.
• ADNOC has signed long-term LNG supply agreements with Indian Oil Corporation Ltd and Hindustan Petroleum Corporation Limited.
• The 2024 Bilateral Investment Treaty and a strategic defense partnership provide businesses certainty for long-term investments.
• India and the UAE are exploring joint digital infrastructure and capacity-building initiatives across Africa.
• India is hosting the AI Impact Summit in New Delhi from February 16-20, 2026, highlighting its role in shaping AI technology and governance.
• The Delhi Declaration between India and Arab Foreign Ministers outlines cooperation across politics, economy, energy, technology, and security through 2028.

Key Concepts Involved:

• CEPA (Comprehensive Economic Partnership Agreement): A trade agreement between two countries to reduce or eliminate tariffs and promote trade.
• Foreign Direct Investment (FDI): An investment made by a firm or individual in one country into business interests located in another country.
• Sovereign Wealth Fund: A state-owned investment fund composed of money generated from a country's surplus reserves.