India-UAE CEPA Review: Strengthening Strategic Economic Ties and Addressing Trade Barriers

The recent review of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) marks a significant milestone in the deepening bilateral relationship between the two nations. Since its implementation in May 2022, the CEPA has acted as a catalyst for economic integration, with both nations now aiming for an ambitious target of $100 billion in non-oil trade by 2030.

During the review, senior officials focused on streamlining trade by addressing non-tariff barriers (NTBs). These include Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT), which often hinder the seamless flow of goods despite reduced tariffs. By harmonizing standards and improving transparency, both countries aim to provide greater market access for Indian MSMEs and UAE-based investors. This is particularly relevant for sectors like jewelry, textiles, and engineering goods.

A pivotal aspect of the discussions was the expansion of cooperation into strategic sectors. In renewable energy, the partnership aligns with India’s green transition goals and the UAE’s investment capabilities. Food security remains a cornerstone, particularly under the I2U2 (India, Israel, UAE, USA) framework, where the UAE is investing in integrated food parks in India to secure its supply chains while benefiting Indian farmers. Furthermore, the integration of digital payment systems—linking India’s UPI with the UAE’s JAYWAN—is set to revolutionize cross-border remittances and tourism, benefiting the large Indian diaspora.

The India-UAE relationship has evolved from a buyer-seller dynamic in the energy sector to a comprehensive strategic partnership. The UAE serves as a vital gateway for India to the Middle East, Africa, and Europe, especially through initiatives like the India-Middle East-Europe Economic Corridor (IMEC).