The Hindu Editorial Analysis
16 February 2026
The UAE-India corridor is sparking a growth story
(Source – The Hindu, International Edition, Page no.-10 )
Topic: GS 2 – Bilateral, regional and global groupings and agreements affecting India’s interests
Why in news: India–UAE ties are in news after achieving $100 billion trade five years early, setting a new $200 billion target by 2032, and expanding cooperation under CEPA into AI, infrastructure, and third-market outreach.
Key Details
- CEPA (2022) accelerated bilateral trade, helping India–UAE reach $100 billion five years early; new target set at $200 billion by 2032.
- Non-oil trade touched $65 billion, reflecting diversification beyond the traditional energy partnership.
- Strong two-way investments: UAE invested $22+ billion in India; Indian firms invested $16+ billion in the UAE.
- Expansion into manufacturing, logistics, renewables, banking, and AI, marking deeper economic integration.
- Backed by policy frameworks (CEPA, Bilateral Investment Treaty 2024) and strategic trust, positioning the corridor for global outreach.
A Rapidly Expanding Economic Partnership
- The India–UAE Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, set a target of $100 billion in bilateral trade by 2030.
- This milestone was achieved five years ahead of schedule.
- In January 2026, leaders announced a new target of $200 billion by 2032.
- The India–UAE economic corridor is now among the fastest-growing trade partnerships globally.
Scale of Trade and Investment
- Non-oil trade grew nearly 20% last year, reaching $65 billion, reflecting diversification beyond energy.
- Since 2000, UAE investments in India have exceeded $22 billion, while Indian investments in the UAE have crossed $16 billion.
- Nearly five million Indians reside in the UAE, forming its largest diaspora community.
- Over 1,200 flights weekly connect the two nations, making it one of the world’s busiest air corridors.
Sectoral Transformation
- The partnership is expanding into advanced manufacturing, financial services, technology, and logistics.
- Reliance Industries partnered with TA’ZIZ for a $2+ billion low-carbon chemicals project in Abu Dhabi.
- Ashok Leyland shifted electric bus production to the UAE.
- Larsen & Toubro (L&T) was selected for a major solar-plus-storage project in Abu Dhabi.
- Indian firms in banking, technology, and healthcare are strengthening operational presence in the Emirates.
UAE Investments in India
- DP World committed an additional $5 billion for Indian ports and logistics infrastructure.
- Emirates NBD acquired a majority stake in RBL Bank, marking a major FDI milestone in Indian banking.
- ADNOC signed long-term LNG supply agreements with Indian Oil Corporation Ltd (IOCL) and Hindustan Petroleum Corporation Limited (HPCL).
- Mubadala invested over $4 billion in Indian healthcare, renewables, and technology.
- Abu Dhabi Investment Authority (ADIA) became the first sovereign wealth fund to establish a presence in GIFT City.
Policy Foundations and Strategic Trust
- The partnership is anchored in:
- CEPA, eliminating tariffs on nearly 90% of tariff lines
- The 2024 Bilateral Investment Treaty (BIT)
- A growing strategic defence partnership
- These frameworks provide policy certainty and enable long-term investments.
Expanding into Third Markets
- Bharat Mart, under construction in the UAE, will serve as a wholesale hub for Indian exports targeting Africa, West Asia, and Eurasia.
- The initiative aims to double India’s exports to these regions.
- Both nations are exploring collaboration in digital infrastructure and capacity-building in Africa.
- The corridor is evolving into a platform for global economic outreach.
Artificial Intelligence: The Next Frontier
- India is hosting the AI Impact Summit (February 16–20, 2026) in New Delhi — the first global AI summit in the Global South.
- The UAE, which appointed the world’s first Minister of State for AI (2017), is a natural technology partner.
- Cooperation is underway in advanced computing, data centres, and AI-driven innovation.
- The emphasis is shifting from rapid expansion to smart, collaborative growth in emerging technologies.
A Broader Strategic Realignment
- India, now the world’s fourth-largest economy with a $4 trillion GDP, is expanding its global footprint.
- The Delhi Declaration between India and Arab Foreign Ministers outlines cooperation across economy, energy, technology, and security through 2028.
- The India–UAE corridor stands at the forefront of this wider strategic convergence.
The Road Ahead
- The first $100 billion milestone was achieved faster than expected.
- The next phase will depend not just on trade volumes, but on the depth of economic integration and the expansion of the corridor’s global reach.
- The partnership demonstrates the potential unlocked when policy alignment, capital flows, and strategic visionconverge.
Conclusion
The India–UAE economic corridor exemplifies how strategic vision, robust policy frameworks, and sustained capital flows can transform bilateral ties into a global partnership. Having surpassed the $100 billion trade milestone ahead of schedule, the focus now shifts to deeper integration in technology, AI, infrastructure, and third markets, shaping a resilient and future-ready economic alliance.
Descriptive question:
Q. Critically analyse how the India–UAE economic corridor reflects emerging models of strategic economic integration and assess its implications for India’s global trade, technology partnerships, and third-market outreach. (15 marks, 250 words)