India and UAE Sign Historic ₹2 Lakh Crore Trade Agreement

March 15, 2025 – India and the United Arab Emirates (UAE) have signed a ₹2 lakh crore ($24 billion) trade agreement, strengthening economic ties and boosting investment in key sectors like energy, infrastructure, and technology. The deal was finalized during PM Narendra Modi’s visit to Abu Dhabi, marking a new milestone in bilateral relations.

Key Highlights of the Agreement:

• Boost to Energy Sector – UAE will increase crude oil supply to India and invest in green hydrogen projects.
• Infrastructure Development – UAE companies to invest in smart cities, highways, and metro projects in India.
• Ease of Trade – Reduced tariffs on several Indian exports, including textiles, jewelry, and pharmaceuticals, making Indian goods more competitive in UAE markets.
• Job Creation – The agreement is expected to generate over 5 lakh jobs in both countries, benefiting Indian expats in the UAE.

Impact on India’s Economy:

1. Increased Foreign Investment – Strengthens India’s position as an attractive destination for Middle Eastern investments.
2. Stronger Rupee Trade Mechanism – Both nations will expand rupee-dirham trade, reducing dependence on the US dollar.
3. Boost for Indian Exporters – Sectors like automobiles, electronics, and agriculture will benefit from improved market access.

Reactions & Future Prospects:

• PM Modi: “This agreement will usher in a new era of economic growth and opportunities for both nations.”
• UAE Crown Prince Sheikh Mohammed bin Zayed Al Nahyan: “India is one of our most trusted partners, and this deal will further enhance our economic collaboration.”
• Experts: Predict that bilateral trade will exceed $100 billion annually by 2030.

With this deal, India and UAE continue to strengthen their strategic partnership, making it one of the most significant economic collaborations in recent years.