Daybreak Why India's $100B trade romance with the UAE is only the beginning
15 snips
Sep 9, 2025 India's trade relationship with the UAE is flourishing, surpassing $100 billion and offering enticing benefits for manufacturers. Companies like Tata are flocking to tax-free zones, drawn by capital access and superior infrastructure. However, this partnership raises crucial questions about whether the UAE serves as a launchpad for India’s global aspirations or poses a threat to its own manufacturing goals. As global ties shift, India's pivot to the UAE could redefine its economic landscape.
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CEPA Supercharged Trade
- The India–UAE relationship jumped after a 2022 CEPA and hit $100B in FY25, reshaping trade dynamics.
- The CEPA covers goods, services, investment, and IP, widening cooperation beyond simple tariffs.
Tata And Indians In Jafsa
- Jafsa houses 11,000 companies, of which 2,300 are Indian, showing large Indian presence in Dubai free zones.
- Tata already operates steel facilities and luxury hotels across the UAE as an early mover.
UAE's Financial Pull Over Logistics
- UAE free zones offer tax-free status, top infrastructure and fast access to capital that attract manufacturers.
- Firms like OSM cite easy regional and international funding as the key reason to set up in Dubai.