UAE India CEPA Hits $101B Milestone, Activates MAITRI Digital Trade Corridor
The UAE-India Comprehensive Economic Partnership Agreement (CEPA), signed four years ago, has reached a significant milestone, with bilateral trade soaring to USD 101.25 billion in the fiscal year 2025-26. This achievement was highlighted during the CEPA Fourth Anniversary Open Majlis held on May 21, 2026, in New Delhi. The event underscored the agreement’s unique structural approach, which emphasizes economic complementarity between the two nations.
Trade Growth and Future Projections
Since the CEPA’s implementation in May 2022, bilateral trade has surpassed initial projections, growing by over 50% from the original 2030 estimate. The agreement aims to elevate bilateral trade to USD 200 billion by 2032. In FY 2025-26, India’s exports to the UAE reached USD 37.36 billion, while imports totaled USD 63.89 billion, primarily consisting of crude oil and gold. This shift aims to address a trade deficit of USD 26.53 billion, facilitating the movement of Indian value-added products to Western markets and Emirati capital to the East.
The CEPA has also seen a notable increase in operational activity, with businesses issuing 122,036 Certificates of Origin in FY 2024-25, marking a 24.7% rise from the previous year. This statistic reflects the agreement’s practical application beyond mere diplomatic engagement.
Launch of the MAITRI Virtual Trade Corridor
A pivotal development announced during the anniversary event was the activation of the MAITRI Virtual Trade Corridor. This initiative is expected to streamline shipping times and reduce logistics costs across the bilateral trade corridor. The MAITRI platform will serve as an interconnected digital window for cargo clearance, enhancing efficiency in customs, logistics, and financial systems in real-time.
The unified digital cargo clearance system is set to be fully operational by April 2026, as part of India’s budget commitments. This includes extending duty deferral for Authorized Economic Operators to 30 days, further facilitating trade flows. The MAITRI corridor embodies the CEPA’s digital trade chapter, which was designed to tackle connectivity and regulatory challenges in both bilateral and global digital trade.
Strategic Implications of the CEPA
The UAE-India CEPA and its digital corridor are integral components of a broader strategic framework. The India-Middle East-Europe (IMEE) Economic Corridor aims to cut shipping times between India and Europe by up to 40%, positioning the UAE as a vital economic hub connecting Asia and Europe. Additionally, the Bharat Mart project at Jafza will enhance physical infrastructure with 2.7 million square feet dedicated to retail, warehouses, and logistics facilities starting in 2026.
The recent visit by the Modi government also introduced dimensions of defense, energy, and financial cooperation into the trade framework. Agreements include USD 5 billion in UAE investments in Indian infrastructure and financial institutions, as well as collaboration on strategic petroleum reserves and maritime infrastructure. Consequently, the UAE-India CEPA has evolved beyond a traditional trade pact, establishing a legal foundation for multifaceted bilateral economic cooperation.
Supporting Innovation and Startups
The UAE-India CEPA has also initiated programs to facilitate cross-border market access for Indian startups, receiving over 10,000 applications for its first edition. This structured market access pathway is designed to foster institutional investment in early-stage companies, creating a compounding effect over the long term.
Four years into the CEPA, the trade corridor has doubled in significance, establishing digital infrastructure that accelerates the journey toward the next USD 100 billion in trade. The ambitious target of USD 200 billion by 2032 now appears operational rather than aspirational.
For further details, visit the source: timesofdubai.ae.
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Published on 2026-05-22 12:16:00 • By the Editorial Desk
