National News
CEPA boosts India, UAE trade: Trade between India and the UAE surged 14.76% to $83.64 billion in 2023-24
The trade relationship between India and the United Arab Emirates (UAE) has experienced significant growth in the financial year 2023-24. According to the annual report of the UAE India CEPA Council, bilateral trade increased by 14.76% year-on-year to reach $83.64 billion. This marks the first full financial year since the implementation of the Comprehensive Economic Partnership Agreement (CEPA), which has played a crucial role in reducing trade barriers and facilitating economic expansion.
India’s exports to the UAE saw a substantial surge of 27.03%, while the UAE’s exports to India also increased by 7.09% compared to the previous financial year (2022-23). The positive impact of CEPA, which came into force on May 1, 2022, has been evident in these figures, as the agreement has streamlined trade processes and encouraged investment flows between the two nations.
One of the most notable sectors benefiting from this trade growth is the gem and jewellery industry. Bilateral trade in this sector expanded from $20.88 billion in FY2022 to $28.15 billion in FY2024, marking an impressive 35% increase. India’s gem and jewellery exports to the UAE witnessed even greater growth, rising by over 60% from $4.95 billion in FY2022 to $8.04 billion in FY2024.
India’s non-oil trade with the UAE rose by 20.1% to $59.72 billion in 2023-24, compared to $49.73 billion in the previous year. The strong trade ties have also been complemented by a rise in bilateral investments. Indian investments in the UAE amounted to approximately $1.16 billion, covering a range of industries including technology and logistics. Meanwhile, the UAE emerged as India’s fourth-largest foreign investor, committing $3.35 billion to high-potential sectors within India.
The India-UAE trade relationship has strengthened significantly since the implementation of CEPA, fostering a robust and mutually beneficial economic partnership. The substantial growth in trade volumes, particularly in non-oil trade and the gem and jewellery sector, underscores the effectiveness of the agreement in enhancing economic cooperation. With continued policy support and investment facilitation, both nations are poised for sustained trade growth in the coming years.
The Reserve Bank of India (RBI) has significantly accelerated the repatriation of its gold reserves, bringing home 274 tonnes of gold since March 2023, including approximately 64 tonnes in the six months leading up to September 2025. This strategic move is primarily driven by mounting geopolitical uncertainty and rising global skepticism over keeping sovereign assets offshore, especially after the G7 nations froze the foreign currency reserves of Russia and Afghanistan.
By the end of September 2025, the RBI’s total gold holdings stood at 880.8 tonnes, with a majority—575.8 tonnes—now held domestically, reflecting a deliberate effort to enhance economic sovereignty and safeguard national wealth from potential financial sanctions or warfare. This repatriation effort, alongside surging gold prices, has also increased gold’s share in India’s total foreign exchange reserves to 13.9%, underscoring the central bank’s focus on diversification and risk mitigation in a fragmented global landscape.
The rise in gold prices has also elevated the precious metal’s proportion in total reserves to 13.9%.By September 2025, the foreign currency assets of around $579.18 billion were allocated as follows: $489.54 billion in securities investments, $46.11 billion in deposits with other central banks and BIS, whilst $43.53 billion remained in deposits with overseas commercial banks.
As at March 31, RBI’s gold holdings stood at 879 tonnes, with 512 tonnes stored within the country and 348.6 tonnes held under custodial arrangements with the Bank of England and Bank of International Settlements.The central bank has indicated that it engages external asset managers to handle a modest portion of reserves to investigate alternative reserve management strategies and products, whilst diversifying the portfolio. These activities are conducted within the framework permitted by the RBI Act, 1934.
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