One of the world’s most active trade corridors just hit a milestone worth paying attention to.
The $101 billion moment
India-UAE bilateral trade reached $101.25 billion in FY 2025-26, up from $100.03 billion the previous year crossing the $100 billion mark for the second consecutive year in a row. The growth has been driven by sectors like gems and jewellery, engineering goods, electronics and agriculture, with non-oil trade now accounting for nearly two-thirds of the total.
The engine behind this is the Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022 and in force since May 2022 India’s first comprehensive trade pact with a Gulf nation. Both governments have now set a shared target of $200 billion in bilateral trade by 2032.
Where the numbers actually stand
During 2025-26, India’s exports to the UAE rose about 2% to $37.36 billion, while imports increased 0.77% to $63.89 billion leaving a trade deficit of $26.53 billion, largely due to UAE exports of energy products, gold and raw materials that India depends on. Investment flows are deepening in parallel: FDI from the UAE into India reached $4.34 billion in FY 2024-25, with a further $2.45 billion recorded between April and December of FY 2025-26.
The underused opportunity
Here’s what most exporters miss: CEPA’s tariff preferences aren’t automatic. According to trade experts, Certificates of Origin issued under CEPA had crossed only about 8,000 by late 2025 a modest number against India’s total UAE export base, suggesting many eligible SME shipments are still paying full duty simply because businesses aren’t using the mechanism correctly. Rules-of-origin cumulation where exporters can use UAE-sourced inputs and still qualify for preferential tariffs also remains underused due to low awareness outside trade-compliance circles.
Why this matters beyond India and the UAE
CEPA isn’t just a bilateral deal it functions as a gateway to Africa, other GCC and Middle Eastern countries, CIS nations, and parts of Europe. For businesses in either market, that positions the corridor as a launchpad, not just a destination.
Where GTEC fits in
GTEC operates directly in both India and the UAE which means we’re positioned to help businesses actually use this corridor correctly: securing the right Certificates of Origin, structuring sourcing to benefit from rules-of-origin cumulation, and connecting exporters with verified buyers who are already active in this $101 billion relationship.
The takeaway: The India-UAE corridor isn’t slowing down it’s targeting double its current size by 2032. The businesses that learn to use CEPA’s mechanisms properly today will be the ones capturing the bigger share of that growth tomorrow.
