India-UAE CEPA: Four Years On — How the Comprehensive Economic Partnership Agreement Reshaped Trade, Investment and Services

India-UAE CEPA completed four years on 18 February 2026. This review tracks progress toward the $100 billion goods and $15 billion services targets, sector winners, the 75% rise in UAE FDI and practical steps for exporters.

Edited by Manish Patel

    India-UAE CEPA completed four years on 18 February 2026

    India-UAE CEPA has been in force since 1 May 2022 , and it set ambitious targets: $100 billion in goods trade and $15 billion in services trade within five years of signing. If you follow trade or plan to work in exports, this agreement matters for market access, jobs and investment.

    India-UAE CEPA: Why this checkpoint matters

    The Comprehensive Economic Partnership Agreement — commonly called the India-UAE CEPA — was signed on 18 February 2022 during the India‑UAE Virtual Summit. The fourth anniversary on 18 February 2026 is a useful moment to check what changed on trade flows, investment and services mobility.

    Policy targets under the CEPA are concrete. They aim to boost goods trade to $100 billion and services trade to $15 billion within five years. The agreement also promised tariff cuts, clearer rules of origin, customs procedures, and provisions on sanitary and phytosanitary (SPS) measures and technical barriers to trade (TBT).

    Key dates: signing, enforcement and milestones

    Event Date
    CEPA signed (India-UAE CEPA) 18 February 2022
    CEPA came into force 1 May 2022
    CEPA completed four years 18 February 2026
    Article published / updated 27 March 2026

    Clear timeline: year-by-year progress since signing

    Year 1 (May 2022–2023). The pact moved from signature to implementation. Many tariff cuts and trade facilitation measures began rolling out. Exporters got early tariff preferences on several product lines and customs procedures under the agreement started being used.

    Year 2 (2023–24). Trade flows began responding. You saw clearer demand patterns for India’s textiles, gems and jewellery, and some agri shipments. Early signs of increased UAE interest in Indian projects and companies appeared as initial FDI signals.

    Year 3 (2024–25). Bilateral trade crossed a historic milestone. For FY 2024‑25 bilateral trade exceeded the $100 billion mark, while India’s merchandise exports to the UAE reached $36.63 billion . Non‑oil trade was reported at about $68 billion . This year captured the most visible early gains from tariff reductions and services linkages.

    Year 4 (2025–26). This is consolidation time. The government and trade bodies have focused on improving logistics, using digital platforms like Bharat Mart to reach West Asia buyers, and ironing out customs and certification bottlenecks. Union Commerce Minister Piyush Goyal highlighted these outcomes publicly as the CEPA completed four years.

    FY 2024-25 key outcomes (data snapshot)

    Indicator Figure / Notes
    Bilateral trade (FY 2024‑25) Crossed $100 billion milestone
    Merchandise exports to UAE (FY 2024‑25) $36.63 billion
    Non‑oil trade (FY 2024‑25) Approximately $68 billion
    Services trade target (by 2027) $15 billion (target)
    Goods trade target (by 2027) $100 billion (target)
    FDI inflows from UAE (post‑CEPA) Grew nearly 75%
    UAE investor rank in India 7th largest investor

    These numbers show where gains clustered. Goods exports such as gems and jewellery, textiles, engineering goods, pharmaceuticals, and agricultural items showed visible growth in FY 2024‑25. Services exports have also strengthened, with digital and knowledge services mentioned as expanding.

    Sector-wise impact: winners and emerging opportunities

    Gems and jewellery. Tariff benefits under the CEPA helped Indian exporters price more competitively in UAE markets. This sector remains a clear short‑term winner.

    Textiles and apparel. Preferential access reduced costs for key apparel lines, helping Indian brands and manufacturers expand shipments to duty‑sensitive buyer segments in the UAE.

    Agriculture and marine products. Market access improved but exporters must meet SPS requirements. High‑value agri items and marine products found demand, but exporters need strict compliance with sanitary and phytosanitary measures.

    Engineering goods and automobiles. These sectors gained from tariff reductions in selected lines, but competitiveness depends on logistics efficiency and compliance with technical standards (TBT).

    Pharmaceuticals and digital services. Pharmaceuticals showed stronger exports. Services—especially digital, IT and knowledge services—are proving to be a growing link and part of the CEPA’s services trade momentum.

    Trade targets: how close are we to $100B goods and $15B services?

    Using FY 2024‑25 as a baseline, bilateral trade has already crossed the $100 billion figure overall. Non‑oil trade is around $68 billion , indicating scope to raise non‑oil goods and services further.

    Services trade still has room to grow to meet the $15 billion target by the five‑year mark. Growth levers include deeper tariff coverage for services, easier movement of natural persons under CEPA rules, digital trade facilitation, and stronger business‑to‑business linkages.

    Which levers matter most? Tariff preferences help, but improving logistics and customs speed is equally critical. Platforms such as Bharat Mart are expected to institutionalise market access for SMEs across West Asia. For services, mobility of professionals and clear recognition rules for qualifications will matter.

    FDI and investment flows: what the 75% rise means

    A near 75% rise in FDI inflows from the UAE after CEPA is a headline figure. It signals stronger investor confidence and fast capital movement into sectors that include manufacturing, infrastructure, real estate and services. The UAE’s position as India’s 7th largest investor highlights that capital is diversifying across sectors.

    For you as a student or early professional, this trend means more internships, project finance roles, and overseas placements, especially in sectors where UAE capital is active. Companies expanding due to UAE investment may hire for supply‑chain, compliance and export roles.

    Rules, compliance and eligibility: what exporters must know

    Rules of origin. To claim tariff benefits under the India‑UAE CEPA you must meet the agreement’s rules of origin for your product. This determines whether your goods qualify as originating in India.

    SPS and TBT compliance. Agricultural, marine and pharmaceutical products must meet sanitary and phytosanitary (SPS) standards and technical barriers to trade (TBT) requirements set by the UAE. Non‑compliance can block shipments even if tariffs are reduced.

    Customs procedures. The CEPA includes customs facilitation provisions. Exporters need to prepare correct documentation, including certificates of origin, and follow the customs declaration processes agreed under the pact.

    Movement of natural persons. CEPA has provisions to ease the temporary movement of professionals and service providers between India and the UAE. Firms must check the exact categories covered and the documentation required for their staff.

    SMEs and Bharat Mart: institutionalising export access

    Bharat Mart has been flagged as a platform to institutionalise India’s export presence in West Asia. For micro, small and medium enterprises (MSMEs) this matters because digital marketplaces can reduce search costs and connect sellers directly with UAE buyers.

    How SMEs can position themselves. First, confirm your product qualifies under CEPA rules of origin. Second, ensure you meet SPS/TBT requirements for your sector. Third, list products on relevant marketplaces and use trade facilitation support from export promotion councils. Lastly, prepare for buyer due diligence and prompt documentation for customs.

    Exact enrollment and operational steps for Bharat Mart are being rolled out by authorities. Keep an eye on official trade portals and notifications for the formal sign‑up and onboarding rules.

    Implementation challenges and gaps to watch

    Missing tariff‑line detail. Public summaries note tariff reductions across many sectors, but exact tariff lines and percentage cuts are not always available in one place. Exporters must check notifications and customs schedules for precise tariff treatment.

    Limited FDI sector breakdown. While headline FDI growth is clear, a detailed split by sector and project value is not widely published. This gap makes it hard to judge where capital is concentrated.

    Certification and logistics bottlenecks. Many exporters report delays in obtaining certificates of origin and meeting SPS/TBT requirements. Logistics costs and paperwork can blunt the advantage of tariff cuts.

    Dispute settlement and implementation issues. The CEPA has dispute settlement mechanisms, but public examples of disputes or arbitration under the pact are scarce. Watch for how authorities handle contentious cases — these set precedents for exporters.

    Policy recommendations to watch. Authorities can speed progress by publishing tariff‑line lists, simplifying origin certification, expanding Bharat Mart access for MSMEs, and making qualification recognition easier for services professionals.

    Practical checklist for Indian exporters and service providers

    1. Confirm origin status. Check whether your product meets the CEPA rules of origin. If unsure, consult your export promotion council.

    2. Obtain correct documents. Secure the necessary certificate of origin and supporting invoices before shipment. In many cases customs will ask for these to apply preferential duty.

    3. Check SPS/TBT requirements. For agri, marine and pharma exports, confirm labelling, testing and sanitary clearances required by the UAE.

    4. Update customs declarations. Use any simplified procedures available under CEPA, and file honest, complete paperwork to avoid delays.

    5. Use digital platforms. Register on export platforms and marketplaces (including Bharat Mart when enrollment opens) to find vetted UAE buyers.

    6. Get expert help when needed. For complex origin rulings, customs valuation or dispute matters consider a customs broker, trade lawyer or certified compliance consultant.

    7. For services providers: verify mobility rules. If you or your team plan temporary work in the UAE, check CEPA provisions on movement of natural persons and necessary permissions.

    What students and job‑seekers should note

    If you want a career in trade, logistics or international business, the CEPA has practical effects. Expect more roles in export compliance, supply‑chain management, trade finance and digital exports. UAE investment growth also means opportunities in project finance, infrastructure and services firms with cross‑border operations.

    Learn the basics: rules of origin, trade documentation, and SPS/TBT concepts. These are small technical skills that make you valuable to exporters and trade‑related startups.

    Gaps that need public data or follow‑up

    Several useful details remain thin in public reporting. These include a breakdown of UAE FDI by sector and value, the exact tariff lines and percent cuts per sector, and publicly available dispute settlement cases under the CEPA. Monitoring these will show whether gains are broad‑based or concentrated.

    FAQs: Quick answers

    Under which agreement does India aim to reach $100 billion in non‑oil trade with the UAE?

    Under the India‑UAE Comprehensive Economic Partnership Agreement (India‑UAE CEPA) signed on 18 February 2022 .

    When did the India‑UAE CEPA come into force?

    The agreement came into force on 1 May 2022 .

    What are the CEPA trade targets?

    The CEPA set targets to increase goods trade to $100 billion and services trade to $15 billion within five years of signing.

    Has bilateral trade reached $100 billion?

    Yes. Bilateral trade crossed the $100 billion milestone in FY 2024‑25 according to government figures highlighted at the four‑year mark.

    How much did India export in merchandise to the UAE in FY 2024‑25?

    India’s merchandise exports to the UAE were $36.63 billion in FY 2024‑25.

    Did FDI from the UAE increase after CEPA?

    Yes. FDI inflows from the UAE grew nearly 75% following CEPA implementation, and the UAE is now reported as India’s 7th largest investor .

    What regulatory checks should exporters run before shipping?

    Check rules of origin, obtain certificates of origin, meet SPS and TBT requirements, and follow the customs procedures mandated under CEPA.

    How can MSMEs use Bharat Mart?

    Bharat Mart is expected to institutionalise India’s export presence in West Asia by connecting sellers to buyers. Watch official channels for enrollment details and start preparing documentation and compliance checks now.

    Conclusion: What to expect before 2027

    The India‑UAE CEPA has produced measurable shifts in trade and investment in its first four years. Goods trade has reached the headline $100 billion milestone and UAE FDI into India has risen substantially. Services growth is visible but still needs momentum to hit the $15 billion mark by the five‑year deadline.

    For exporters and students, the practical work is clear: understand rules of origin, meet SPS/TBT standards, use digital platforms like Bharat Mart, and consider compliance skills as a career boost. Policymakers should prioritise transparency on tariff lines and FDI breakdowns and simplify certification and customs procedures to convert tariff preferences into real export growth.

    If you’re planning a career in trade, exports or international business, the CEPA era means more jobs, more cross‑border projects and a sharper need for practical trade skills. Keep learning the trade rules, and watch official updates as authorities roll out more operational details leading up to the 2027 target.

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