UAE firms eye bigger role in India as non-oil trade surges

UAE companies are lining up to expand investments in India across infrastructure, banking, startups, logistics, and data centres, Commerce and Industry Minister Piyush Goyal said on Friday, underscoring the growing momentum in economic ties between the two nations.

- Issac John

Goyal, who was in the UAE for the 13th meeting of the India-UAE High-Level Joint Task Force on Investments, said both sides have “reset their targets” to scale up capital flows and deepen collaboration in new-age sectors such as renewable energy, shipbuilding, pharmaceuticals, retail, and technology. “The UAE recognises India as a key investment destination. My sense is that we can look at a much larger investment flow given the work that has happened in India,” he told reporters after leading a 75-member business delegation.

The meetings coincided with fresh figures showing the impact of the Comprehensive Economic Partnership Agreement (Cepa), signed in 2022. In the first half of 2025 alone, bilateral non-oil trade surged 34 per cent year-on-year to nearly $38 billion, with Cepa-enabled trade at $37.6 billion. Non-oil, non-precious metals trade now stands close to $55 billion, putting the two countries firmly on track to achieve the $100 billion target within the next three years.

Cepa’s impact has gone well beyond tariff reductions. It has diversified trade into gems and jewellery, food processing, telecom, green energy, and digital services, while also triggering cooperation in artificial intelligence, space technology, and financial integration. Indian states are leveraging the pact to bring in targeted investment and integrate SMEs into global value chains, while the UAE has emerged as a preferred hub for Indian family offices and high-net-worth investors.

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