Trade between India and the UAE has crossed $100 billion since the two countries signed the India-UAE trade CEPA, their free-trade deal, in 2022, External Affairs Minister S Jaishankar said in Mumbai on Tuesday. The UAE is now India’s third-largest trading partner — after the US and China.
Updated: October 21, 2026, 10:12 AM IST
Quick Read
- Jaishankar made the $100-billion announcement during talks with UAE Foreign Minister Sheikh Abdullah bin Zayed Al Nahyan in Mumbai on October 20.
- UAE trade ministry data puts the figure at $101.25 billion in FY 2025-26 — the second straight year above $100 billion; the new target is $200 billion by 2032.
- CEPA, signed February 18, 2022 and in force since May 1 that year, cut trade barriers and opened markets on both sides; a bilateral investment treaty and local-currency settlement followed.
The number came in Jaishankar’s opening remarks. “The bilateral trade has crossed the USD 100 billion mark since the signing of the CEPA,” he said, “and two-way investments continue to grow, reflecting the confidence of our businesses in each other’s economies.” His guest: Sheikh Abdullah bin Zayed Al Nahyan, the UAE’s Deputy Prime Minister and Foreign Minister, who landed in Mumbai on Monday night for a two-day visit.
Why this meeting mattered now
The visit didn’t happen in a vacuum. Al Nahyan’s trip comes amid a fresh wave of attacks on Saudi Arabia, reportedly by Houthi militants. Jaishankar opened with the regional picture: “The situation in the Gulf remains a matter of deep concern… We continue to support free, safe and unimpeded flow of trade, energy and fertiliser.”
That energy line is the one that affects Indian households. The UAE is a major oil and gas supplier to India, and any disruption to Gulf shipping raises fuel and transport costs — and fertiliser prices that hit farmers.
He also thanked the UAE leadership “for ensuring the well-being of the Indian community in the UAE” — more than 3 million Indians live and work across the Emirates, one of the largest Indian diasporas anywhere.
For context: Jaishankar was himself in the UAE just last week (October 14–16), where he met Emirati leaders and joined the Raisina Middle East Dialogue in Abu Dhabi. This Mumbai meeting was the return leg — a review, not a first hello.
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What CEPA actually changed
CEPA — the Comprehensive Economic Partnership Agreement — was signed on February 18, 2022, and took effect on May 1 that year. Its job was simple: cut tariffs and open markets so goods move cheaper and faster between the two countries.
The results, per the UAE’s own foreign ministry: bilateral trade reached about $101.25 billion in FY 2025-26, up from $100.05 billion in 2024-25. That’s two consecutive financial years above the $100-billion line. India is the UAE’s second-largest trading partner in return.
The next target is bigger: $200 billion by 2032 — roughly doubling in six years. Behind the headline number sits more plumbing: a bilateral investment treaty, local-currency settlement arrangements, and Emirati sovereign wealth money flowing into Indian infrastructure, property, and logistics.
Jaishankar’s framing: “After more than a decade of sustained engagement, the India-UAE relationship is today really living up to its promise as a comprehensive strategic partnership.” He added that cooperation in defence, energy, and technology “is acquiring a strategic character.”
One honest note: the Financial Express’s reporting on the meeting is explicit that no new defence or technology agreements were announced. This was a review meeting. The $200-billion target is the real test — it needs sustained growth in trade and investment, plus predictable regulations on both sides.
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What happens next
Trade above $100 billion two years running shows the partnership has scale. The question now is whether the CEPA machinery — tariff cuts, investment treaties, currency settlement — can double it by 2032, and whether Gulf tensions stay calm enough not to get in the way. The next milestone to watch: FY 2026-27 trade data and any new investment announcements from the Gulf funds. India’s diplomacy is delivering elsewhere too — read Modi-Tusk talks: 5 wins for India.
FAQ
What is CEPA?
The Comprehensive Economic Partnership Agreement — India and the UAE’s free-trade deal, signed February 18, 2022, in force since May 1, 2022. It reduces trade barriers and improves market access for businesses in both countries.
How much is India-UAE trade worth now?
About $101.25 billion in FY 2025-26, per the UAE foreign ministry — the second straight year above $100 billion. The target is $200 billion by 2032.
Why did the UAE foreign minister visit Mumbai?
Sheikh Abdullah bin Zayed Al Nahyan was on a two-day visit starting October 19, reviewing the full relationship — trade, energy, defence, technology — against a tense West Asia backdrop, with fresh Houthi attacks on Saudi Arabia.
Sources: The Indian Express (Oct 20, 2026); The Financial Express explainer (Oct 20, 2026); The Hindu (Oct 20, 2026); Economic Times (Oct 20, 2026).
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