India UAE-Economic Ties in recent times

India in general enjoys a good trade relationship with many of the nations across the world. With the nametag of one of the fastest-growing economies in Southeast Asia, relations with the most of neighboring countries remain good. One of the important trading partners in the Middle East is said to be the United Arab Emirates, where trade and international relations are said to be very strong. Considering the rankings in trade, the UAE stands third, which is still significant for a country like India and continues to grow strong since the bilateral agreements signed back in 2022, which is the CEPA which accounts for 85 billion USD.

The Indian population is growing strongly in the UAE region, which is said to be close to 30 percent. This comprised states like Kerala, Tamil Nadu, Andhra Pradesh, and parts of north India. With faster processing of work visas and accommodating more talent from India, the region is growing at an advantage. The key attracting factor for many Indians is the improved working conditions and ease of doing business helps both nations significantly. However, the blue-collared workers still face the problems of higher living costs which deters them from having a long duration of work life in UAE.

In 2025, the relations with the UAE are said to have grown stronger because investments in trade, energy, and technology will continue for the next five years. With a tune of 14 billion USD annually, spread across the next five years, the partnership will ensure significant progress in the relationship between the partners. At this pace, the relationship will be a lot stronger with the benefits of foreign trade and exchange inflows will remain stronger.

The industries in our nation will see a sharp improvement in many sectors. This includes sectors like shipbuilding, robotics, AI, and infrastructure development - which will see growth in improved quality. Along with this India will also see a benefit from LNG (liquified natural gas) which will likely come in collaboration with all the GCC nations combined.

Both India and UAE have long-term diplomatic relations, and they celebrated their 50th anniversary in 2023. With the renewed mission of economic development and diplomatic ties, this year opportunities to grow. With many Indian business houses doing well in UAE and other GCC nations, the current agreement will benefit Indian home soil with a better competitive advantage.