The Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India — signed in February 2022 and implemented from May 2022 — has fundamentally reshaped bilateral trade, positioning the UAE as India’s third-largest trading partner and India as the UAE’s second-largest. In 2026, the CEPA is in full effect and the results are measurable.
UAE-India Trade Volumes 2026
Bilateral non-oil trade between the UAE and India reached approximately USD 60-65 billion in 2025-26 (up from USD 45 billion pre-CEPA), with the target of USD 100 billion by 2030 on track. India is the UAE’s top source of imports (textiles, engineering goods, pharmaceuticals) and a key destination for UAE re-exports. The UAE is India’s second-largest export destination after the USA.
CEPA Tariff Reductions: What Changed
Under CEPA, India granted duty-free access to over 97% of UAE product lines by value, including: gold and jewellery (previously 10-15% duty, now 0%), machinery, chemicals, and plastics. The UAE granted duty-free access to Indian goods including: textiles and apparel, engineering products, pharmaceuticals, and processed food. The 5% UAE VAT applies, but no customs duty on qualifying CEPA goods.
Key Sectors Benefiting from CEPA
- Gold and Jewellery: Dubai re-exports Indian gold jewellery to GCC and Africa duty-free. India’s jewellery exports to UAE surged 40%+ post-CEPA.
- Pharmaceuticals: Indian generic drug manufacturers export to UAE and re-export to African markets duty-free.
- Technology Services: Indian IT companies set up UAE operations to service the MENA market with improved visa access.
- Food and Agriculture: Indian mangoes, rice, and spices enter UAE duty-free; UAE dates and seafood enter India at reduced duties.
Indian Diaspora and Remittances
The Indian diaspora in the UAE numbers approximately 3.5 million — the largest single expatriate community. Annual remittances from the UAE to India exceed USD 20 billion, making the UAE India’s top remittance source. The Indian community drives demand for Indian restaurants, supermarkets, cultural events, and education facilities across Dubai, Abu Dhabi, and Sharjah.
CEPA for Investors: What to Know
Indian companies investing in the UAE benefit from: 0% corporate tax on export income from UAE free zones (on qualifying foreign-source income), access to the UAE’s CEPA network of 28+ trade agreements, Arabic-English bilingual legal system with DIFC and ADGM international financial courts, and strong Indian community networks in Dubai (DIC, DMCC, DIFC host large Indian business communities).
Related Reading
- How to Set Up a Business in the UAE 2026
- Dubai Real Estate 2026: Indian Investor Guide
- UAE Golden Visa 2026: Indian Investor Eligibility
Also Read: Jebel Ali Port 2026: Gateway to Global Trade and GCC Logistics | UAE Health Insurance 2026: Essential Benefits Plan, Costs and Employer Obligations | UAE AI Regulation 2026: The Dubai AI Act, National Strategy and Business Compliance Guide
