India and the United Arab Emirates are looking to significantly expand their economic relationship, with bilateral trade projected to reach $200 billion by 2032. The target reflects growing commercial ties, stronger investment flows and new opportunities expected through the BRICS grouping.
Mohammad Haseeb, Strategic Country Manager at Ras Al Khaimah Economic Zone, said there remains considerable scope for businesses in both countries to deepen their engagement. India-UAE trade currently stands at about $101 billion, up from roughly $73 billion before the implementation of the Comprehensive Economic Partnership Agreement (CEPA).
The trade pact has helped improve market access and encouraged greater commercial interaction between the two economies. Officials and business representatives believe that as more companies become familiar with the opportunities available under CEPA, its contribution to bilateral trade could increase further.
Investment is another major pillar of the relationship. The UAE has invested approximately $25 billion in India over the past two decades and has recently announced an additional investment commitment of about $5 billion. The commercial connection also extends to the large Indian business community in the UAE, where more than 200,000 Indian companies are operating.
The partnership is increasingly moving beyond conventional trade and investment. Tourism, digital payments, technology and emerging technologies are becoming important areas of cooperation. The presence of around 4.5 million Indians in the UAE also continues to strengthen business and people-to-people connections between the two nations.
Digital initiatives such as the Unified Payments Interface, virtual payment corridors and collaboration in emerging technologies are creating additional avenues for economic integration. These developments could make cross-border transactions and business operations more efficient while opening opportunities for technology-focused companies.
The UAE’s participation in BRICS during India’s 2026 chairship is also expected to create fresh possibilities for trade and investment. The grouping could provide Indian and UAE businesses, including startups, with a wider platform to explore partnerships and investment opportunities across member economies.
Investment engagement is also expanding at the state level. Delegations from Punjab, Bihar, Madhya Pradesh and Odisha have explored opportunities in the UAE, while UAE-based investors continue to assess projects and businesses in India.
Greater use of CEPA provisions, sustained investment and cooperation in emerging sectors are expected to remain crucial as India and the UAE work toward their ambitious $200 billion trade objective by 2032.
