The UAE and India are demonstrating what becomes that you may perhaps well presumably also bring to mind when two international locations align policy, capital, and execution around a shared vision’
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Something phenomenal has took location within the economic relationship between India and the United Arab Emirates (UAE). When the Total Economic Partnership Settlement (CEPA) used to be signed in 2022, all sides had location a target of $100 billion in bilateral trade by 2030. That milestone used to be reached 5 years sooner than agenda. In January this year, leaders location a brand new target of $200 billion by 2032. Few economic corridors within the realm as of late are keen with the tempo and ambition of this one.
The dimensions and direction
The numbers repeat section of the account. Non-oil trade between the two international locations grew close to twenty% final year to attain $65 billion, demonstrating that this partnership has moved smartly past its energy origins. UAE entities comprise invested over $22 billion into India since 2000, while Indian companies comprise invested more than $16 billion into the UAE. Nearly 5 million Indian nationals are dwelling and work within the Emirates, forming its greatest diaspora neighborhood and the human backbone of a corridor that now supports over 1,200 flights a week between the two international locations — one in every of the busiest air routes on earth.
But what excites doubtlessly the most is no longer correct the scale. It is the direction. This corridor is being reshaped by evolved manufacturing, monetary products and companies, know-how, and logistics. Reliance Industries has partnered with TA’ZIZ on a $2 billion-plus funding in low-carbon chemicals manufacturing in Abu Dhabi. Ashok Leyland has relocated its electric bus manufacturing from the UK to the UAE. Larsen & Toubro has been selected as most smartly-most original contractor for one in every of the realm’s most valorous photo voltaic-plus-storage initiatives in Abu Dhabi. Indian banks, know-how companies, and smartly being-care companies are constructing real operational presence at some stage within the Emirates. These have to no longer tentative first steps. They’re confident prolonged-time interval industrial commitments.
Funding is flowing with equal conviction within the wrong draw. DP World has committed an additional $5 billion to Indian infrastructure, expanding its already intensive community of ports and logistics parks at some stage within the country. Emirates NBD’s acquisition of a majority stake in RBL Monetary institution represents the greatest single international insist funding in Indian banking historical past. ADNOC has signed prolonged-time interval LNG provide agreements with Indian Oil Company Ltd and Hindustan Petroleum Company Limited worth billions of bucks. Mubadala has deployed over $4 billion at some stage in Indian smartly being care, renewables, and know-how platforms. Abu Dhabi Funding Authority grew to change into the first sovereign wealth fund to place a injurious in India’s GIFT Metropolis.
It is for the prolonged time interval
What underpins all of right here is have faith constructed over a long time, reinforced by human connections, and supported by a policy structure — the CEPA, which eradicated tariffs on roughly 90% of tariff lines, the 2024 Bilateral Funding Treaty, and now a strategic defence partnership – that presents companies the tips to set prolonged-time interval bets.
The ambition is now extending into third markets. Bharat Mart, at the 2nd below constructing within the UAE, will support as a wholesale hub for Indian goods targeting Africa, West Asia and Eurasia, aiming to support double India’s exports to those regions. India and the UAE are moreover exploring joint digital infrastructure and skill-constructing initiatives at some stage in Africa. The corridor is becoming a platform no longer correct for bilateral alternate but moreover for world attain.
Synthetic intelligence (AI) is rising as the following critical frontier for this corridor. India this week hosts the AI Affect Summit in Unique Delhi (February 16-20, 2026) — the first world AI summit held within the Global South. It is miles a formidable observation of India’s rising role in shaping how this know-how develops and is dominated. The UAE, which appointed the realm’s first Minister of Allege for AI support in 2017 and has invested closely in AI infrastructure and research ever since, is a natural accomplice in this space. The UAE and India are already exploring cooperation on evolved computing skill, facts centres, and AI-driven innovation. In a know-how that may perhaps reshape every sector of each economy, the international locations that lead can even no longer be folks who make fastest on my own, but folks who make the most life like partnerships.
The subsequent chapter
India’s world 2nd is right here. As the realm’s fourth-greatest economy, with GDP at around $4 trillion, it is powered by entrepreneurial energy, manufacturing ambition, and digital infrastructure that are surely world-class. In conversations with Indian industry leaders, there may perhaps be one theme that is coming through consistently: the urge for meals to scale internationally has by no draw been stronger. The question is rarely any longer whether or no longer Indian venture will stride world, but how effectively the comely corridors can urge that trot.
This is moreover section of a worthy broader realignment. The recent Delhi Declaration between India and Arab International Ministers outlined an valorous programme of cooperation at some stage in politics, economy, energy, know-how, and safety through 2028. The India-UAE corridor is at the forefront of that broader convergence.
The UAE and India are demonstrating what becomes that you may perhaps well presumably also bring to mind when two international locations align policy, capital, and execution around a shared vision. The first $100 billion came sooner than anyone expected. The subsequent chapter will likely be outlined no longer by the numbers on my own, but by how deeply their economies mix — and how far that integration reaches.
Badr Jafar is Special Envoy of the United Arab Emirates International Minister for Enterprise and Philanthropy
Printed – February 16, 2026 12:08 am IST
