ع
The UAE and India are reinforcing their strategic economic partnership through enhanced logistics connectivity and supply chain projects, a statement from the Emirates News Agency reported on September 12, 2026. Bilateral trade between the two countries reached $101.25 billion in the 2025-2026 financial year. This marks the second consecutive year that the total has surpassed $100 billion, with both sides now targeting $200 billion by 2032.
The Comprehensive Economic Partnership Agreement that entered into force in 2022 has played a central role in this expansion by eliminating tariffs on the majority of goods and promoting investment, according to the WAM dispatch. The pact was the first of its kind for the UAE and has facilitated increased private sector opportunities across multiple industries. Non-oil trade now constitutes a growing portion of the overall figures.
Key initiatives driving the move into logistics corridors include the Bharat Mart project, the UAE-India Virtual Trade Corridor and collaborative work on the India-Middle East-Europe Economic Corridor. These efforts are designed to improve supply chain integration and establish new pathways for trade and investment that extend to third markets. The Virtual Trade Corridor in particular has been credited with reducing processing times for cross-border shipments.
DP World has committed more than $5 billion to infrastructure development in India, focusing on ports, logistics parks and free trade warehousing zones. The operator has further partnered with Indian entities to advance tech-enabled supply chains and multimodal connectivity. Such investments align with the broader goal of building robust logistics networks between the two economies.
Strong aviation links complement these physical corridors, with 1,202 flights operating weekly between UAE and Indian cities. This connectivity supports the movement of people, goods and ideas that underpin the economic relationship. The UAE has emerged as a vital hub for Indian companies expanding regionally.
As a BRICS member since January 2024, the UAE views its deepening ties with India as a template for cooperation within the bloc, the statement indicated. Participation in the New Development Bank provides additional avenues for joint financial projects. The partnership emphasises sustainable and integrated economic growth.
A strategic report by the UAE India Business Council and Arthur D. Little has projected significant potential for the bilateral consumer and retail corridor over the next decade. The assessment called for harmonised standards, streamlined customs and greater digital integration to fully realise the corridor’s promise. Logistics enhancements are seen as critical to lowering costs and boosting efficiency across connected markets.
