India–UAE Trade Push: Modi, MBZ Make Big Digital Corridors Push

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Foreign Secretary Vikram Misri says India–UAE partnership is shifting from oil and trade to fintech, MSMEs, and global supply chains

By S JHA

Mumbai, January 19, 2026 — India–UAE trade partnership has entered a decisive acceleration phase, with both countries setting an ambitious target of $200 billion in bilateral trade by 2032, Foreign Secretary Vikram Misri said while briefing the media.

The milestone comes barely three years after the Comprehensive Economic Partnership Agreement (CEPA) was signed in 2022, under which bilateral trade has already crossed $100 billion, underscoring the speed and depth of the economic convergence between New Delhi and Abu Dhabi.

Misri said the two leaders agreed to facilitate exports from India’s MSME sector to West Asia, Africa and Eurasia, marking a shift from traditional commodity trade to value-chain integration. Flagship initiatives such as Bharat MAT, the Virtual Trade Corridor, and Bharat Africa Setu will be fast-tracked to digitally connect Indian producers with global markets.

In a significant boost to India’s financial ambitions, UAE giants DP World and First Abu Dhabi Bank have been granted permission to establish operations in GIFT City, Gujarat, strengthening India’s push to emerge as a regional financial and logistics hub.

The two sides also agreed to interlink national payment platforms, building on the successful rollout of UPI in the UAE, the local currency settlement mechanism, and the Jivan Card. This move is expected to reduce transaction costs, deepen trade flows, and encourage cross-border digital commerce.

Taken together, the announcements signal that the India–UAE trade partnership is no longer transactional but structural, combining capital, connectivity, and technology. As global supply chains fragment, New Delhi and Abu Dhabi are positioning themselves as trusted, future-ready partners.