India-Dubai trade ties strengthen; 38.5 billion dirhams overall trade volume in H1 2021
India-Dubai trade figures grew 74.5% on-year to 67.1 billion dirhams from 38.5 billion dirhams in H1 2021, whereas China recorded 30.7% on-year growth.
India became the second-biggest trading partner of Dubai as the overall trading volume surged to 38.5 billion dirhams in the first half of 2021.
According to the official statement released, China preceded India as the largest trading partner of Dubai 86.7 billion dirham worth of trade. The USA ranked third in the list. The total export grew 45% on year to 109.8 billion dirhams in H1 2021.
Dubai trade: top five global trading partners
India-Dubai trade volume grew 74.5% on-year to 67.1 billion dirhams from 38.5 billion dirhams in H1 2021, whereas China recorded 30.7% on-year growth. The total Chinese trade stood at 66.3 billion dirhams in the first half of 2020. America traded 32 billion dirhams with Dubai, a 1% on-year rise from 31.7 billion dirhams.
Saudi Arabia ranked fourth with 30.5 billion dirhams, an on-year increase of 26%, followed by Switzerland at 24.8 billion dirhams.
The total trade share of the five biggest trade partners in H1 2021 rose 30.34% to 241.21 billion dirhams from 185.06 billion dirhams in H1 2020.
“We are on track to increase our global trade to 2 trillion dirhams in the coming years,” Sultan bin Sulayem, DP World Group Chairman & CEO and Chairman of Ports, Customs and Free Zone Corporation, said.
Dubai trade: The non-oil exports surges
According to the statement, the volume of Dubai’s non-oil external trade in the first half of 2021 rose 10% to 48 million tons compared with 43.7 million tons in H1 2020. Exports rose 30.8% year-on-year to reach 10.1 million tons. Re-exports stood at 7 million tons, a 6% hike, while imports rose by 4.25% to 31 million tons.
Gold topped the list of commodities in Dubai’s H1 external trade at 138.8 billion dirhams, comprising 19.2% of Dubai trade, followed by telecoms at 94 billion dirhams comprising 13% of total trade.
Diamonds ranked third in the list with a share of 8% of Dubai trade and a volume of 57.3 billion. Next on the list are Jewelry trade at 34.1 billion dirhams and vehicle trade at 28 billion dirhams. Both of these comprise 4.7% and 4%, respectively.
The advanced systems at Dubai Customs completed 12.7 million customs declarations in eight months, a daily average of 55,000. Customs transactions in H1 2021 grew to 11.2 million, a 53.4% rise.
Trade Relations bewteen India and Dubai
The UAE’s plan to build a diversified, knowledge-based 21st-century economy has dovetailed with Modi’s blueprint for realising India’s economic potential by promoting economic engagement with the Neighborhood and extended neighbourhood, as per its foreign policies. India’s relation with UAE is an effect of Modi’s policy in the region, stemming from recognising the security concerns in the Gulf regions and the Indian ocean.
Meanwhile, Dubai has become the centre stage of the growing India and UAE relations with rapid technology and infrastructure expansion. The UAE has invested $9 billion as foreign direct investment in India to aid Modi’s vision of a $5 trillion Indian economy. It is the 10th biggest source of FDI in India.
The India-UAE Food Corridor has attracted $5 billion in proposed investments from the Emirates, a report in MEI@75 quoted. The proposed investment list includes India’s mega food parks, farming logistics, warehousing, and fruit and vegetable hubs. India has also proposed a 100% tax exemption from their interest, dividend, and capital gains income, depending on the type of investment made in infrastructure and other select sectors before March 31, 2024, to attract more such funds.
