External Affairs Minister S. Jaishankar announced in October 2026 that India-UAE bilateral trade has crossed the $100 billion mark, a significant milestone in the two countries' economic relationship. The UAE is one of India's largest trading partners and hosts a substantial Indian diaspora. The announcement underscores the deepening of ties accelerated by the Comprehensive Economic Partnership Agreement signed in February 2022, which was India's first such deal after a decade-long pause in bilateral trade agreements.

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed on 18 February 2022 and entering into force on 1 May 2022, was a landmark trade deal that aimed to raise bilateral trade from roughly $60 billion to $100 billion within five years. The $100 billion crossing, confirmed by Jaishankar, shows the target was met ahead of schedule.

For exam purposes, several layers matter. First, the UAE CEPA was India's first free trade agreement (FTA) after more than a decade — the previous one was with South Korea in 2009/10. Under CEPA, tariffs on over 90% of goods traded between the two countries were eliminated. India gained preferential access for labour-intensive sectors: textiles, gems and jewellery, leather, footwear, pharmaceuticals, and engineering goods. The UAE, in turn, gained access for petrochemicals, aluminium, and date products.

Second, the UAE is India's third-largest trading partner and second-largest export destination. It is also a major source of remittances, with around 3.5 million Indians living and working there — the largest expatriate community in the UAE.

Third, India and the UAE have linked their digital payment systems (UPI–AANI integration) and moved toward rupee-dirham trade settlement, reducing dollar dependence — a key RBI-relevant angle.

Fourth, the bilateral investment framework under CEPA includes provisions for services, intellectual property, and government procurement, making it a comprehensive deal beyond goods trade alone.