Two years after the India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force in May 2022, bilateral non-oil trade between the two economies reached a record USD 90 billion in the financial year ending March 2026. The CEPA — which eliminated tariffs on 80 percent of goods flowing between India and the UAE — has reshaped trade flows across 11 key sectors and created measurable business opportunities for companies in both countries seeking preferential access to each other’s markets.
Sectors with the Greatest Trade Growth
Jewellery and precious metals remain the largest trade category, with Indian gold jewellery exports to the UAE growing 34 percent post-CEPA to USD 11.8 billion annually. The UAE’s near-zero tariff on Indian jewellery — compared to the 15 percent duty in the EU and 7.5 percent in the US — has made Dubai the dominant re-export hub for Indian jewellery destined for global markets, with the Dubai Gold Souk and DMCC’s Almas Tower processing a growing share of Indian manufacturing output.
In the B2B services sector, Indian IT companies have accelerated UAE market entry under the CEPA’s services chapter, which grants Indian professional services firms simplified establishment rights in Dubai, Abu Dhabi, and the UAE free zones. Infosys, Wipro, and HCL Technologies have all opened expanded GCC delivery centres since 2022, collectively employing more than 8,000 professionals in the UAE and providing services to government, banking, and logistics clients across the region.
What CEPA Means for UAE-Based Companies Targeting India
For UAE companies seeking to export to India, CEPA provides tariff concessions on 90 percent of goods within five years, including significant reductions on industrial chemicals, plastics, aluminium products, and food and beverages. UAE-origin goods that previously faced 10 to 25 percent duties in India now enter at 0 to 5 percent under CEPA certificates of origin — creating immediate cost advantages for UAE manufacturers and re-exporters.
The UAE Ministry of Economy operates a dedicated CEPA Business Services Centre at the Dubai Chamber building in Deira, providing certificate of origin issuance, rules of origin consultation, and market entry advisory for companies seeking to use the agreement commercially. In 2025, the centre processed 142,000 CEPA certificates of origin — a 78 percent increase from 2024, signalling rapidly growing commercial utilisation.
What Comes Next: CEPA Expansion Talks
The UAE and India are currently negotiating CEPA Phase 2, which is expected to cover digital trade, cross-border data flows, fintech mutual recognition, and expanded services access in areas including accounting, legal services, and healthcare. Phase 2 negotiations are scheduled to conclude by December 2026, with ratification targeted for H1 2027. For businesses in these sectors, tracking the Phase 2 outcome closely is essential — the agreement could materially change the competitive landscape for cross-border professional service delivery between two of the world’s most commercially dynamic economies.
Also Read: Highest Paying Sectors and Roles in the UAE — 2026 Salary Benchmark Report | Setting Up a Business in the UAE 2026: Free Zone, Mainland and DIFC Compared | Cost of Living in the UAE 2026: A Practical Guide for Residents and New Arrivals
