4 March , 2022 Fdiindia
Trade, Investment Future between India and the UAE Looks Extremely Bright: Report
Bilateral trade between India and the UAE is estimated to reach $100 billion by 2030 due to robust trade growth, highlighting the strong potential for business between the two nations, said a joint report ‘India-UAE Bilateral Trade and Investment Report’ compiled by the Indian Business & Professional Council (IBPC) and KPMG.
India is the second-largest trade partner of the UAE, while the UAE comes third on the list of India’s largest trading partner nations.
The report sheds light on the immense flow of foreign direct investment (FDI) between the two countries. As per the UAE Embassy in India, the total bilateral FDI is $67 billion from 2003 to 2021.
“The future of the India-UAE trade and investment relationship looks extremely bright. As both nations aim to strengthen ties in the coming years, there are several opportunities across various sectors to boost bilateral trade and investment,” said Farhan Syed, Partner, Head of Advisory for KPMG Middle East and South Asia (MESA) and Lower Gulf.
“The India-UAE Comprehensive Economic Partnership Agreement (CEPA) will help deepen economic ties between the two nations and potentially boost non-oil trade to the $100 billion goal in five years. Our report with the IBPC focuses on highlighting the immense growth potential of economic ties between the two nations,” he added.
As per the data provided by the Indian Embassy in the UAE, India has witnessed about $17-18 billion in investments from the UAE between 2000-June 2021, of which more than $11 billion came in the form of FDI.
Indian companies invested majorly in the coal, oil and gas, and real estate sectors in the UAE, whereas a significant amount of the UAE’s FDI flowed into India’s real estate and ceramics and glass industries.
“IBPC is happy to publish this report, which highlights significant aspects of the India-UAE relationship in terms of bilateral trade and investment flows. While trade between India and the UAE has flourished over several decades, the geopolitically strategic relationship between the two countries has blossomed into an enduring partnership in the recent past,” said Suresh Kumar, Chairman, IBPC.
“This is poised to grow further on the cusp of CEPA – particularly with India looking to press ahead with its ambitions to become one of the largest economies, aiming to be a $5 trillion economy by 2024-2025 and a $10 trillion economy by 2030,” he further added.
The report mentions the top 12 sectors that can witness high growth in the future. The sectors are oil and gas, gems and jewelry, food production, financial markets/services, aviation, renewables, pharmaceutical and medical devices, security, technology startups and AI, advanced technology, defense, and infrastructure development.