UAE Signals $25 Billion Investment in India, Sets $200 Bn Trade Target

India Manufacturing Review Team
Monday, 28 September 2026

The UAE signals an additional $25 billion investment in India as both countries target more than $200 billion in bilateral trade by 2032, expanding cooperation across investment, energy and emerging technologies.

The United Arab Emirates has indicated plans for an additional investment of around $25 billion in India, while the two countries are targeting more than $200 billion in bilateral trade by 2032, Union Commerce and Industry Minister Piyush Goyal said.

Speaking about India-UAE economic relations, Goyal said the additional investment commitment would build on the UAE’s existing investments across sectors in India. The announcement comes as both countries continue to expand cooperation in trade, investment, energy and emerging industries.

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Bilateral trade between India and the UAE reached $101.25 billion in the financial year 2025-26, according to official Indian government data. The UAE is currently India’s third-largest trading partner and second-largest export destination. India is the UAE’s second-largest trading partner.

The two countries have set a target of increasing bilateral trade to more than $200 billion by 2032. The target was agreed during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s visit to India in January 2026. The two sides are also working to expand trade beyond traditional sectors and connect businesses, including micro, small and medium enterprises, with new markets.

Investment is another major component of the bilateral economic relationship. Cumulative foreign direct investment from the UAE into India stood at $25.59 billion between April 2000 and March 2026, making the UAE the seventh-largest source of FDI for India during the period. UAE investments in India span infrastructure, energy, real estate, private equity and financial services.

The two countries are also exploring opportunities in areas such as artificial intelligence, advanced technology, energy and infrastructure. During the January 2026 visit, India and the UAE agreed in principle to collaborate on establishing a supercomputing cluster in India through C-DAC and UAE-based G42. The facility is intended to support research, application development and commercial use.

Energy remains another area of economic engagement. India and the UAE have continued discussions and agreements involving energy supplies and infrastructure, while investment cooperation is also expanding through UAE sovereign wealth funds and private companies.

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The bilateral economic relationship is supported by the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which has contributed to increased trade since its implementation. Both countries are also seeking to facilitate business connectivity and expand market access through initiatives including Bharat Mart and a virtual trade corridor.

The proposed additional investment and the $200-billion trade target indicate the scale of economic cooperation being pursued by India and the UAE through the current decade.

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