India-UAE Trade Agreement: A Surge in Imports and Growing Deficit

India's imports from the UAE have surged by over 70% year-on-year, reaching USD 7.2 billion in October. This increase has contributed to a trade deficit of USD 3.5 billion. The larger trade gap is due to a significant rise in imports, despite growth in export figures. Recent discussions highlighted India's concerns about the increase in certain imported goods.

India's imports from the United Arab Emirates saw a substantial year-on-year rise of 70.37% in October, amounting to USD 7.2 billion. This increase has led to a trade deficit of approximately USD 3.5 billion for the month, as reported by the commerce ministry.

The overall deficit for the period from April to October has also expanded significantly, widening to USD 17.71 billion from USD 6.85 billion in the previous year. This growth in the trade gap is largely attributed to the implemented Free Trade Agreement (FTA) since May 2022.

Key discussions at a recent meeting involved India's request for UAE's attention on the rising imports of specific commodities like silver products, platinum alloy, and dry dates, as these are seen to stretch the FTA rules. The UAE remains a crucial trading partner with exchanged goods including mineral oil, essential oils, and metals.

(With inputs from agencies.)