This blog delves into the dynamics, statistics, tariff and non-tariff barriers, agreements, initiatives, procedures for starting EXIM trade, and major export-import products between these two nations. India and the United Arab Emirates (UAE) share a robust and multifaceted trade relationship. As of 2023, the bilateral trade between India and the UAE stands at approximately $85 billion, making the UAE one of India’s top trading partners. The trade balance is mutually beneficial, with both nations exporting and importing a diverse range of products. India’s Exports to UAE are valued at around $45 billion and India’s Imports from UAE: valued at approximately $40 billion. According to the Indian Brand Equity Foundation (IBEF), trade between India and the UAE has grown significantly. This robust trade relationship positions the UAE as India’s third-largest trading partner and second-largest export destination, highlighting the strong economic ties and mutual benefits of their bilateral trade agreements
Starting EXIM trade business from India to UAE
- Business Registration: Select the appropriate business structure (e.g., sole proprietorship, partnership, private limited company). Register with the Ministry of Corporate Affairs in India. Acquire an Importer Exporter Code (IEC) from the Directorate General of Foreign Trade (DGFT).
- Customs and Documentation: Register with the Central Board of Indirect Taxes and Customs (CBIC). Ensure proper documentation, including invoices, certificates of origin, and shipping documents.
- Compliance with UAE Regulations: Adhere to the UAE’s quality and safety standards.
- Import Regulations: Comply with UAE’s import regulations and obtain necessary permits.
Which documents are required for exporting to The UAE?
The following documents are primary to your business if you are planning to sell your products to the UAE region.
- Airway Bill: The Airway Bill Number or the Airway Bill is a document sent alongside cargo shipped by any international carrier, which also tracks the package.
- Pro-forma Invoice: A ProForma invoice is generated based on the mutually agreed terms and conditions between the exporters and the importers.
- Certificate Of Origin: It is a declaration that the goods being shipped were manufactured or processed in the country mentioned in the invoice.
- Purchase & Sales Contract between importer and exporter
- Packing List of relevant exporters and their products of shipment
- Details of the manufacturer, manufacturing date, expiry date
What are major tariff and non-tariff Barriers in between India-UAE?
Tariff Barriers
Tariff barriers between India and the UAE are relatively moderate, thanks to multiple bilateral agreements aimed at reducing import duties. However, specific sectors may still face higher tariffs:
- Oil and Petroleum Products: Subject to moderate tariffs.
- Agricultural Products: Some items attract higher tariffs due to protective policies.
Non-Tariff Barriers
Non-tariff barriers often pose significant challenges and include:
- Quality Standards: Both nations have stringent quality control measures that exporters must adhere to.
- Import Licensing: Certain goods require import licenses, adding to the complexity.
- Regulatory Compliance: Compliance with local regulations, including health and safety standards, is mandatory.
Top trade initiatives between India-UAE
- Comprehensive Economic Partnership Agreement (CEPA): Signed in 2022, the CEPA aims to enhance trade and investment flows between India and the UAE. It covers areas such as goods, services, investment, and intellectual property.
- India-UAE High-Level Task Force on Investments: Focuses on enhancing bilateral investments.
- Food Security Corridor: Aims to secure food supply chains and agricultural trade.
What are major export-import products between India-UAE?
Major Exports from India to UAE
- Petroleum Products: Significant export due to India’s refining capacity.
- Precious Metals and Jewelry: High demand for gold and diamonds in the UAE.
- Food and Agricultural Products: Includes rice, spices, and fruits.
Major Imports from UAE to India
- Crude Oil: The UAE is a major supplier of crude oil to India.
- Petrochemicals: Various petrochemical products are imported from the UAE.
- Aluminum and Metal Products: Significant imports to support India’s industrial sector.
India-UAE EXIM trade relations are characterized by deep historical ties, strategic partnerships, and robust economic exchanges. With initiatives like CEPA and the High-Level Task Force on Investments, both nations are poised to further enhance their trade and investment landscape. For businesses looking to engage in EXIM trade between India and the UAE, understanding the regulatory environment, major products, and compliance requirements is crucial for successful operations.