Bilateral trade between India and the UAE is estimated to reach $100 billion by 2030 due to robust trade growth, highlighting the strong potenal for business between the two nations. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) will help deepen economic ties between the two nations and potenally boost non-oil trade to the $100 billion goal in five year. The India - UAE CEPA is also expected to further India's chance to pave the way for a more comprehensive trade agreement with the entire GCC or Gulf Cooperaon Council. The CEPA with UAE therefore is expected to provide level playing field for Indian exporters in the UAE market.
In engineering, UAE remains among the top three export destination for Indian engineering products with a share of around 5.5 percent in India’s global engineering exports. During 2021-22, India’s engineering exports to UAE reached USD 5577.9million, registering a growth of more than 74%. Despite of UAE being one of the top three export destinations there is ample scope for India for increasing its share in UAE’s import considerably and an FTA in place will surely help India to achieve so. In addition, India maintains a trade surplus with UAE in engineering trade and hence is in an advantageous position in the FTA.
India's power sector is one of the most diversified in the world. India is the third-largest producer and second - largest consumer of electricity worldwide, with an installed power capacity of 395.07 GW, as of January 2022. The electrical machinery industry in India is poised for a turnaround with the Government of India de-licensing the industry and allowing 100 percent FDI to facilitating the entry of global majors, promoting the adoption of advanced technologies and R&D by companies, taking initiatives to increase power generation capacity, lowering tariffs and dues on power generation and transmission and distribution equipment, providing support to the industry to expand export markets, and taking steps to improve infrastructure, among other measures.
India supplies 3.0% of UAE's import of electrical machinery & equipment as on 2020. There is ample scope for India for increasing its share in UAE's import considerably and an FTA in place will surely help India to achieve so. In case of electrical machinery & equipment which is the focus product of the Middle East Energy, India's export to UAE is 340.8 million in 2021-22.