India and UAE step up partnership with third-country infrastructure ventures, a $100bn non-oil trade target, local currency trade, and collaboration in defence, aerospace, space, and technology.
India and the United Arab Emirates (UAE) are elevating their economic partnership with a strategic focus on joint global ventures and ambitious new trade targets, signalling a fresh chapter in bilateral cooperation.
At the 13th meeting of the UAE-India High-Level Joint Task Force on Investments in Abu Dhabi, Union Minister of Commerce and Industry Piyush Goyal announced a landmark decision: India and the UAE will now jointly develop infrastructure projects in third countries, particularly in sectors such as mining and housing. The initiative combines India’s technological expertise and skilled manpower with the UAE’s financial strength, creating opportunities that extend well beyond their borders.
Goyal emphasised that the collaboration is built not on rivalry but mutual reinforcement. “There is no competition between India and the UAE. We support each other. India brings capability and talent, the UAE brings investment power. Together, we open up new global possibilities,” he said.
Third-country cooperation
The decision to expand cooperation into third countries reflects a maturing partnership aimed at positioning both nations as global players in infrastructure development. The initiative could prove crucial for regions in need of affordable housing and sustainable mining solutions, while also showcasing India and the UAE as joint leaders in South-South cooperation.
The move aligns with India’s push for a more prominent global role under its G20 presidency legacy and the UAE’s ambitions to diversify its economic influence beyond oil and traditional markets.
Beyond oil and precious metals
Equally significant was the announcement of a new goal: boosting non-oil, non-precious metals trade to USD 100 billion over the next three years. This marks a shift from traditional energy-driven trade to sectors like textiles, pharmaceuticals, fisheries, food processing, and leather goods.
India and the UAE had already achieved USD 100 billion in total bilateral trade within three years of signing the Comprehensive Economic Partnership Agreement (CEPA) in 2022. Now, both sides are pushing to deepen economic diversification.
A large Indian business delegation, comprising representatives from CII, FICCI, and ASSOCHAM, accompanied Goyal, signalling strong private-sector interest. “More than 70 industry leaders joined us, the largest such delegation to the UAE. This reflects the scale of opportunity for trade and investment between our nations,” he said.
Trade in local currencies
Financial cooperation also took centre stage, with the Central Banks of India and the UAE advancing plans to enable bilateral trade in local currencies, integrate payment systems, and cooperate on Central Bank Digital Currencies. The adoption of UPI (Unified Payments Interface) in the UAE is already paving the way for seamless cross-border financial transactions.
Goyal confirmed that an Indian Income Tax officer is now posted in the UAE to accelerate financial transparency and data exchange, a long-pending step welcomed by both governments.
Defence, aerospace, and space
The UAE has also expressed strong interest in expanding cooperation with India in defence, aerospace, and space technology. Discussions included space collaboration with INSPACE, reflecting growing synergy in high-tech sectors. “The UAE is very keen on space technology, and we see this as a field with immense joint potential,” Goyal noted.
The UAE’s diversification strategy dovetails with India’s ambition to be a global hub for defence and space innovation, creating fertile ground for collaboration.
Beyond trade and technology, Goyal highlighted the significant rise in the Indian workforce in the UAE, which has grown from 2.2 million a decade ago to nearly 4.2 million today. He described this as a testament to the UAE’s role in providing opportunities for Indian talent, ranging from engineers and accountants to technologists and skilled workers.
He reiterated Prime Minister Narendra Modi’s vision of the India-UAE partnership as a “role model for the world”, underlining shared goals of sustainable development, innovation, and cultural exchange.
The Joint Task Force, established in 2013, has emerged as the cornerstone of this partnership, resolving investor concerns while driving projects like the Bharat Mart in Jebel Ali, which offers Indian exporters a global showcase. The mechanism has ensured consistent progress, with bilateral non-oil trade reaching USD 38 billion in the first half of 2025, a 34 per cent increase over the previous year.
Hamed bin Zayed Al Nahyan, Co-Chair of the Task Force, said: “The trade and investment relationship between the UAE and India continues to grow at an impressive rate, anchored by shared goals and joint success.”
As both nations prepare to expand their partnership into new regions and sectors, the UAE-India relationship is fast becoming a model of pragmatic, future-oriented economic cooperation that blends investment, innovation, and inclusivity.
