ABU DHABI: India is considered to be the UAE’s primary trade partner, accounting for about 9.8% of its total non-oil trade. India is also the largest importer of goods from the UAE, buying about 14.9% of that country’s exports and about 8.7% of its re-exports, becoming the second-largest market of the UAE in the latter category.
India ranks third among countries that export to the UAE, accounting for about 9.2% of the total imports by the UAE. The total volume of foreign trade between the two countries amounted to $60 billion in 2014, making the UAE India’s primary trade partner in the Middle East and North Africa. Economic sources expect the value of trade exchanges between the UAE and India to hit $100 billion in 2020.
In a report on economic and trade relations between the UAE and the Republic of India, the Ministry of Economy recommended the strengthening of bilateral relations, increasing of the volume of joint investments and expansion of bilateral trade to make the United Arab Emirates India’s primary trade partner. The Ministry said the trade and investment sectors constitute the cornerstones of prosperous bilateral economic ties between the UAE and the Republic of India.
The Ministry also said there are abundant and feasible opportunities for economic co-operation and the establishment of joint ventures between the UAE and India, and that every economic facility is a viable opportunity for establishing partnerships as they all have the necessary factors, such as expertise, modern technology, funds and energy. This encourages both countries to discuss possible partnerships and form specialised committees that can supervise the implementation in a way that serves the interests of both parties.
In its report, the Ministry of Economy also stated that the Framework Agreement on Economic Co-operation between the Republic of India and the Gulf Co-operation Council that took place in August 2005, aimed at exploring the possibilities of establishing a free trade area between the two parties, was a quantum leap in trade exchanges between the two parties. GCC countries are important trade partners of India and account for more than 11% of India’s global exports, a figure that continues to grow. This agreement may also be the key to more comprehensive co-operation between the two parties in various fields.
The report said that India is the seventh largest economy in the world with a total GDP (at current prices) worth about $2,182.577 billion in 2015, according to World Bank statistics, achieving growth of up to 6.4% from 2014.
The report also said India is one of the developing Asian economies that have maintained their economic position despite the global financial crisis, as a result of the large fiscal stimulus offered by its policies and its pursuit of a policy to reduce interest rates on monetary policy tools, as well as the rise in its industrial production and its decreasing reliance on exports.
Statistics issued by the World Trade Organisation in its 2015 World Trade report indicated that India ranked 19th in the world in terms of exports, worth $317 billion, and accounting for 1.7% of the global exports. It also ranked 12th in the world with imports worth $460 billion, accounting for 2.4% of the world’s imports.
