The UAE-India Economic Corridor: CEPA, IMEC, and Bilateral Trade Growth
India-UAE bilateral merchandise trade has nearly doubled from $43.3 billion in FY 2020-21 to $83.7 billion in FY 2023-24 since the signing of the Comprehensive Economic Partnership Agreement (CEPA).
India issued 122,036 Certificates of Origin under the CEPA in FY 2024-25, a 24.7% increase over 98,104 in the previous year, indicating rising utilization of preferential tariff benefits.
Non-oil trade between India and the UAE grew 34% year-on-year in H1 2025 to $38 billion, driven by higher CEPA utilization.
The India-Middle East-Europe Economic Corridor (IMEC), announced at the G20 New Delhi Summit in September 2023, is expected to gain momentum with pilot "corridor-ready" shipments linking Mumbai, Jebel Ali, and European ports.
The EU-India trade deal signed in January 2026 is expected to provide additional impetus to the IMEC framework.
Comprehensive Economic Partnership Agreement (CEPA)
A CEPA is a comprehensive free trade agreement that goes beyond traditional FTAs by covering trade in goods, services, investment, intellectual property, competition policy, and economic cooperation. India's CEPA with the UAE, which entered into force on May 1, 2022, was negotiated in a record 88 days and represents one of India's most ambitious trade agreements.
The near-doubling of bilateral trade and the 24.7% increase in Certificate of Origin issuance demonstrate that the India-UAE CEPA is delivering tangible results, serving as a model for India's future trade agreements in the region.
India-Middle East-Europe Economic Corridor (IMEC)
IMEC is a planned multimodal connectivity corridor announced during the G20 New Delhi Summit on September 9, 2023. It was signed through a Memorandum of Understanding by India, the US, Saudi Arabia, the UAE, the EU, France, Germany, and Italy. The corridor envisions rail and shipping links connecting India to Europe via the Gulf states.
The UAE-India bilateral trade growth under CEPA provides the commercial foundation upon which IMEC's broader multimodal connectivity vision can be built, with the UAE serving as the critical hub connecting India to both Gulf and European markets.
India's Trade Agreement Architecture
India has adopted a multi-track approach to trade agreements, pursuing bilateral CEPAs, regional agreements (like AIFTA with ASEAN), and sector-specific deals. This architecture reflects India's strategy of deepening economic integration with strategic partners while maintaining policy space on sensitive sectors.
The UAE-India trade corridor exemplifies India's strategic shift toward bilateral CEPAs following its RCEP withdrawal, using preferential trade agreements with like-minded partners to boost exports without exposing sensitive sectors to multilateral competition.
- India-UAE bilateral merchandise trade: $43.3 billion (FY 2020-21) to $83.7 billion (FY 2023-24).
- Certificates of Origin issued under CEPA: 122,036 (FY 2024-25), up 24.7% year-on-year.
- Non-oil trade growth: 34% YoY in H1 2025, reaching $38 billion.
- India-UAE CEPA entered into force: May 1, 2022; negotiated in 88 days.
- CEPA coverage: 11,908 tariff lines (India), 7,581 tariff lines (UAE).
- IMEC MoU signed: September 9, 2023, at G20 New Delhi Summit.
- IMEC signatories: India, US, Saudi Arabia, UAE, EU, France, Germany, Italy.
- UAE is India's third-largest trading partner.