India's Imports From UAE Surge 70% In October To $7.2 Bn : Commerce Ministry

India's imports from the United Arab Emirates (UAE), its free trade agreement (FTA) partner, soared by 70.37 per cent year-on-year in October to reach USD 7.2 billion, according to data released by the Commerce Ministry. This surge resulted in a trade deficit of approximately USD 3.5 billion for the month, compared to USD 2.47 billion in September.

Cumulatively, imports from the UAE between April and October rose by 55.12 per cent to USD 38.64 billion, up from USD 24.91 billion in the same period of the previous fiscal year. During the same timeframe, India's exports to the UAE grew by 15.86 per cent to USD 20.93 billion, compared to USD 18 billion a year earlier. This widened the trade deficit for the seven-month period to USD 17.71 billion, a significant increase from USD 6.85 billion in the corresponding period last year.

The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, which came into effect in May 2022, has played a pivotal role in boosting trade. Notably, India's imports from the UAE rose by 49.22 per cent in September and 72.7 per cent in August, while exports increased by 23.75 per cent and 3.16 per cent, respectively, during those months.

However, the surge in imports has prompted concerns. In a recent bilateral meeting, India raised issues regarding the increase in imports of silver products, platinum alloy, and dry dates, urging the UAE to ensure that rules under the FTA are not circumvented. The UAE has agreed to address these concerns.

The UAE remains India’s third-largest trading partner, with bilateral trade valued at USD 83.65 billion in 2023-24. Key imports include mineral oils, chemicals, essential oils and perfumes, precious and semi-precious stones, as well as metals like iron, steel, copper, nickel, and aluminium.

The trade agreement has deepened economic ties between the two nations, though efforts to address imbalances and safeguard fair trade practices continue.