Dubai was buzzing this week, and it wasn’t just because of the weather. India and the UAE got together to talk about their important trade connection. India’s Commerce Minister Piyush Goyal spent a couple of days there, focusing on the behind-the-scenes stuff that really drives economies. His main goal was to check in on the 2022 trade agreement, CEPA, and make sure both countries are still moving toward their goals.
Back in 2022, CEPA was a big deal. It lowered taxes on goods, simplified things for companies, and aimed to boost investments between the two countries. And it took off fast! In just a year, trade went past $85 billion. This encouraged both countries to aim even higher, maybe $100 billion or more. But trade agreements need checkups, just like any relationship. They sometimes need tweaks, reassurance, and honest talks. That’s what Goyal’s visit was all about this week.
He headed up the India-UAE High Level Task Force on Investments meeting. This isn’t a group that gets a ton of attention, but it’s where the initial work on big projects gets done. They chatted about energy, tech, shipping, and construction projects. These things are important for economies. When officials and business leaders meet like this, they’re figuring out the best way to ship things faster, speed up data flow, and ensure a reliable energy supply.
It’s hard to overstate how important the India-UAE relationship is. For India, the UAE is a source of energy and a connector to markets in Africa and Europe. For the UAE, India offers a huge number of consumers, many of whom are getting wealthier and want the newest tech, clean energy, and nicer things. Both countries are trying to deal with problems like inflation, interest rates, and energy costs. At times like these, having good partners really matters.
Energy was a main topic. India needs oil and gas, and the UAE is looking for long-term buyers. But it’s not just about oil anymore. They also talked about solar, wind power, and hydrogen. They both know that clean energy will be really important in the future.
Tech also got a lot of attention. The UAE is investing a lot to become a digital center, and India already has a huge tech industry. A.I., data centers, and financial tech are next up. Imagine an Indian startup expanding into Africa with help from Dubai investors, or a UAE-funded data center in India. These things could happen if both sides keep working together.
Ports, shipping, and air travel were also on the list. The UAE has some of the busiest ports out there. India wants to get better at shipping, so it sees value in working together. Better shipping cuts costs, speeds up trade, and benefits both businesses and people.
Of course, not everything is perfect. Some companies have pointed out complicated rules, paperwork, and delays. Indian companies trying to get started in the UAE sometimes face longer waits than they’d like. And UAE investors in India want clearer rules about taxes and workers. These things are important for getting projects off the ground. Also, world events like trade tensions, oil prices, and protectionism are things both countries need to watch out for.
At the end of the day, this trade story is about regular people. More than three million Indians live and work in the UAE. A strong partnership means more jobs, easier visas, and better support for them. A business person in Dubai said that when India and the UAE are close, it feels like things are more secure. Back in India, business owners and farmers are hoping that lower taxes and faster shipping will mean more money for them.
Politics always plays a role. The UAE wants to show it’s more than just oil and that it’s a strong global center. For India, Goyal’s visit shows good foreign relationships, which the government is happy to emphasize with elections coming up. Both countries want to show that they’re strong and working well together, and it looks like they are.
The visit wasn’t about making big announcements. It was about keeping things running smoothly. We’ll see the results in the next few months as energy, tech, and construction projects move ahead. The real test will be whether things get better for everyday people. Trade partnerships only matter if they improve lives.
As Goyal headed home, it was clear: India and the UAE aren’t just trading, they’re building a solid partnership. It might not sound super exciting, but in an unstable world, stability and trust are worth a lot.
