New Delhi: India’s exports to the UAE are expected to reach an all-time high of $32 billion by the end of the fiscal year and this is owing to the free trade agreement between the two countries, said the Commerce and Industry Department.

In addition, the two countries plan to integrate their customs and logistics portals for real-time tracking of shipments, which will aid in priority entry in ports. The bilateral Comprehensive Economic Partnership Agreement (CEPA) is under review and a potential update is expected in May.

India’s exports to the UAE in June 2022-February 2023 increased by 10.4% YoY to $23.03 billion, while imports increased by 12.9% YoY to $38.95 billion.

Gems and jewellery, automobiles, coffee, tea, and articles of iron and steel are among the products that have recorded growth during this period. However, apparel exports and iron and steel shipments to the UAE declined during the same period.

Despite the government removing export restrictions on iron and steel, shipments fell. The official stated that these exports are expected to improve in the next fiscal year. On a monthly basis, $1.3 billion of India's exports are going on zero duty as compared to $2.72 billion of total outbound shipments.

Besides, there has been an increase in the utilization of the CEPA, with 6,944 certificates of origin issued in February compared to 5,754 certificates in November of the previous year.

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