CII President Foresees Ambitious but Achievable USD 100 Billion India-UAE Non-Oil Trade Target by 2030
CII President Deems Ambitious yet Achievable the USD 100 Billion India-UAE Non-Oil Trade Target by 2030
The lofty goal of achieving a USD 100 billion non-oil trade between India and the UAE by 2030 may seem ambitious, but according to CII President R Dinesh, it’s within reach. During his participation in the global investors’ event ‘Investopia’ and various bilateral meetings, including engagements at the WTO Ministerial Conference, CII President Dinesh expressed confidence in the immense business opportunities present in both nations, particularly in sectors such as textiles, jewelry, and pharmaceuticals.
CII President Dinesh highlighted the positive impact of the free trade agreement between India and the UAE, which came into effect in May 2022, leading to a significant upsurge in bilateral trade and investments. He emphasized that the agreement, known as the comprehensive economic partnership agreement, extends duty-free access to various labor-intensive sectors such as gems and jewelry, textiles, pharmaceuticals, and engineering products.
Bilateral trade has already shown promising growth, reaching USD 84.9 billion in 2022-23, positioning India as the UAE’s top non-oil trading partner. CII President Dinesh underscored India’s vast consumer base and expanding manufacturing capabilities, offering an attractive market for UAE goods, while the UAE’s status as a global trade hub facilitates Indian export access to international markets.
While acknowledging the significant role of oil shipments in bilateral trade, Dinesh emphasized that the comprehensive economic partnership agreement opens new avenues for collaboration beyond the energy sector. He highlighted the agreement’s potential to foster partnerships in services such as telecommunications, construction, education, healthcare, tourism, and transportation services, among others.
Furthermore, CII President Dinesh emphasized the importance of leveraging foreign direct investment (FDI) from the UAE to India, which has more than tripled, reaching USD 3.35 billion in 2022-23. He emphasized the opportunity for joint ventures and technology transfers to enhance production, promote diversification, and add value to both economies.
Streamlining logistics, promoting cross-border e-commerce, and supporting startups were identified as crucial measures to further enhance trade dynamics between the two nations. Dinesh also highlighted the potential for collaboration in sustainable industrial development, technology transfer, and energy security, with promising opportunities for UAE firms in India’s energy, regional connectivity, and maritime sectors.
Additionally, CII President Dinesh identified healthcare and education as sectors offering significant investment opportunities for UAE investors in India. He emphasized the advantages of cooperation in energy security and trade, particularly in green hydrogen and energy storage, given the UAE’s role as a crucial source of crude oil and LPG.
CII President Dinesh also lauded advancements in fintech collaboration, exemplified by the acceptance of the RuPay card in the UAE, as a testament to the commitment of both nations to strengthen their partnership in various sectors.
In summary, while the target of USD 100 billion non-oil trade between India and the UAE by 2030 is ambitious, Dinesh’s assessment suggests that with strategic collaboration and continued efforts to capitalize on mutual strengths and opportunities, it is indeed achievable.
Expanding on the potential avenues for collaboration between India and the UAE, CII President Dinesh emphasized the need for concerted efforts to capitalize on emerging opportunities across various sectors. He highlighted the importance of fostering partnerships in technology-intensive industries, including telecommunications, fintech, and digital services. With both nations witnessing rapid digitization and technological advancements, there exists immense potential for joint ventures and knowledge exchange to drive innovation and economic growth.
Moreover, CII President Dinesh stressed the significance of sustainable development initiatives as a cornerstone of bilateral cooperation. He emphasized the need for collaborative efforts to address pressing environmental challenges and promote green practices across industries. By leveraging each other’s expertise and resources, India and the UAE can contribute significantly to global efforts aimed at mitigating climate change and building a more sustainable future.
In addition to traditional sectors, CII President Dinesh underscored the potential for collaboration in emerging industries such as renewable energy, biotechnology, and artificial intelligence. With India emerging as a global leader in renewable energy production and the UAE spearheading ambitious initiatives in sectors like space exploration and clean energy, there are ample opportunities for mutual collaboration and knowledge-sharing to drive innovation and create new avenues for economic growth.
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