Major Regional Trade Corridor: Analysis and Opportunities

The UAE-India trade corridor represents one of the most significant bilateral relationships globally. Total bilateral trade reached US$100.06 billion in FY 2024-25, growing from just US$180 million annually in the 1970s. Non-oil trade surged 20.5% in 2024 to over US$65 billion. The Comprehensive Economic Partnership Agreement (CEPA) has been instrumental in this growth.

Trade Volume and Composition

India's exports to UAE reached US$37.1 billion in 2024, while imports from UAE totaled US$55.73 billion. UAE ranks as India's third-largest trading partner and second-largest export destination. Major Indian exports include engineering goods (US$8.28B), gems & jewellery (US$7.75B), petroleum products (US$6.39B), and electronic goods (US$3.69B).

UAE exports to India include precious stones (US$27.09B), petroleum products (US$24.74B), and aircraft parts (US$2.47B). UAE is the 7th largest investor in India with cumulative FDI of US$22.84 billion.

Maritime Connectivity

Over 20 shipping lines operate regular services on this corridor, connecting to major ports across the region. Transit times range from 3-7 days depending on specific port combinations, with multiple weekly departures ensuring consistent capacity availability even during peak demand periods.

Regular shipping schedules have been expanded to accommodate growing trade volumes. Container ship deployments on this route feature among the largest vessels in global service, indicating the corridor's economic importance to major shipping lines.

Air Cargo Operations

Multiple carriers provide extensive air connectivity on this corridor, including both national and international airlines. Daily flights connect major metropolitan areas, providing flexibility for time-sensitive shipments and express delivery requirements.

Dedicated freighter aircraft complement belly cargo capacity, handling over 500,000 tonnes annually across all forms of air cargo including express parcels, specialized equipment, and temperature-sensitive products requiring rapid transit.

Free Zone Operations

Many operators from one region have established significant operations in regional free zones to access broader markets. Trade agreements between nations provide preferential tariffs for qualifying goods, creating incentives for value-added operations and regional distribution activity.

Customs procedures on this corridor have been streamlined significantly, reducing processing times and enabling efficient goods movement across the border. Digital integration of customs systems continues improving efficiency.

Specialized Logistics Infrastructure

Dedicated desks at major logistics providers offer specialized services including multi-currency documentation, regulatory expertise specific to each market, and pre-established agent networks across partner nations. This infrastructure significantly reduces complexity for traders and shippers.

Warehousing specifically designed for goods destined for this corridor provides staging and consolidation services that optimize shipment efficiency and reduce total logistics costs for traders.

Growth Projections

Trade volumes are projected to reach significantly higher levels by 2027, driven by infrastructure investments in both regions and deepening economic integration. Logistics capacity expansion is advancing to meet this projected growth, with new shipping services, enhanced air cargo facilities, and additional warehousing coming online.

Future Opportunities

Emerging opportunities include participation in value-added services and manufacturing that leverage the corridor's connectivity. Regional companies increasingly source components from one region and export finished products through the corridor, creating opportunities for specialized logistics and warehousing services.

The corridor continues attracting investment from logistics providers seeking to participate in one of the world's most vibrant and growing trade relationships.