A government official declared on Friday that owing to a thriving demand in various sectors such as gems and jewellery, machinery, and automotive, India's exports to the UAE are estimated to surpass the mark of $31 billion in the current fiscal year. This impressive growth is largely credited to the free trade agreement that India and the UAE entered on May 1, 2022, facilitating India's outbound shipments to the UAE.

Non-oil exports from India rose by 5% to $15.2 billion between June 2022 and January 2023, in comparison to the previous year, whereas imports rose by 3% to $16.8 billion. In the year 2016-17, India's exports to the UAE touched a pinnacle of $31.2 billion.

In January, over 6,000 certificates of origin were issued to Indian exporters, allowing them to avail concessional duty advantages under the trade agreement. A certificate of origin is a crucial document required for exports to those countries with which India has trade agreements. This document identifies the origin of the goods being exported and helps exporters claim duty concessions under free trade agreements.

During the period of June 2022 to January 2023, India's gems and jewellery and electrical machinery exports to the UAE rose by 16% and 29% to $3.8 billion and $2.6 billion, respectively. Furthermore, automobile shipments grew by 38% to $475 million. Other sectors that have recorded healthy growth in exports include coffee, tea, spices, sugar, man-made staple fibres, and edible vegetables.

The government official also mentioned the possibility of trading between the countries in their respective currencies, i.e., the rupee and the dirham. The central banks of both countries are discussing the matter, and their technical teams are working on the modalities.