By Naraway
In this article
India and the UAE signed their Comprehensive Economic Partnership Agreement in February 2022, and it took effect on 1 May that year. Four years on, trade between them has stayed above US$100 billion for two consecutive years.
The Shift Away From Oil
Non-oil trade now makes up close to two-thirds of the total. That is the part the two governments are targeting: US$100 billion of non-oil, non-precious-metal trade by 2030, roughly double the US$48 billion level when the target was set. The third CEPA Joint Committee reviewed progress on pharmaceuticals, certificates of origin, food safety and technical requirements.
The UAE in India's Import Mix
The UAE supplied 8.2% of India's imports in FY26, second only to China at 17.0%. Much of that is energy and precious metals; the CEPA's stated aim is to grow the rest.
CEPA Benefits Depend on Rules of Origin
CEPA duty rates apply only to goods that originate in the UAE or India under the agreement's rules, proven by a certificate of origin. Goods merely shipped through Dubai do not qualify. "India UAE CEPA rules of origin" and "certificate of origin" are among the most searched questions about the agreement, because a shipment that fails the test pays the full Indian duty.
Why It Matters for UAE Businesses
For UAE-based companies, CEPA lowers the cost of goods crossing into India, while setting up in India follows the same company and investment rules as for any other foreign investor. The 2032 target of US$200 billion assumes trade nearly doubles in six years.
Part of Naraway's research series India Market Entry in 2026.
In short
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on 1 May 2022. Bilateral trade reached US$101.25 billion in FY 2025-26, up from US$100.03 billion, the second year above US$100 billion, and non-oil trade is now close to two-thirds of the total. The two countries target US$100 billion of non-oil trade by 2030 and US$200 billion of total trade by 2032. Lower CEPA duties apply only to goods with a valid certificate of origin under the agreement's rules of origin.
- CEPA in force since 1 May 2022.
- Trade: US$101.25 billion in FY26, second year above US$100 billion.
- Non-oil trade is close to two-thirds of the total.
- Targets: US$100 billion non-oil trade by 2030; US$200 billion total by 2032.
- The UAE supplied 8.2% of India's imports in FY26, second only to China.
Sources
- India, UAE trade pact helps boost bilateral trade to cross $100 bn: Goyal, Outlook Business
- UAE-India CEPA at four: bilateral trade crosses USD 100 billion for second year, Newswav
- UAE-India bilateral trade push eyes $200 billion by 2032, Khaleej Times
- BOB Economics: India's trade, April 2026, Bank of Baroda
Frequently Asked Questions
When did the India-UAE CEPA come into force?
On 1 May 2022.
How much do India and the UAE trade?
US$101.25 billion in FY 2025-26, up from US$100.03 billion in FY 2024-25.
What are the India-UAE trade targets?
US$100 billion of non-oil, non-precious-metal trade by 2030 and US$200 billion of total trade by 2032.
Do CEPA duty cuts apply to all goods from the UAE?
Only to goods that meet the agreement's rules of origin and carry a valid certificate of origin.
What are the benefits of the India-UAE CEPA for businesses?
Lower or zero duties on goods that meet the agreement's rules of origin, listed in each country's tariff schedule, plus committees that work on pharmaceutical approvals, food safety and technical standards.
How large is the UAE's share of India's imports?
8.2% in FY26, second to China, according to CMIE data compiled by Bank of Baroda.
