From non-alignment solidarity to comprehensive strategic partnership — trace the evolution of India–UAE relations and assess the role of CEPA in it.

In 1976, President Fakhruddin Ali Ahmed visited the UAE. Both sides spoke of non-alignment and said that, as developing countries, "our requirements are similar" [1]. Five decades later, that solidarity has grown into a Comprehensive Strategic Partnership, and the CEPA is its economic engine.

Evolution of the relationship

• NAM phase (1970s): Ahmed and Sheikh Zayed shared non-alignment and peaceful co-existence. UAE leaders backed South–South economic co-operation and appreciated India's efforts to normalise ties with its neighbours [1].
• Strategic upgrade (2022): The Virtual Summit's Joint Vision Statement, "New Frontiers, New Milestone", set a roadmap covering energy, climate, technology, food security and defence [2].
• Institutional depth: A Bilateral Investment Treaty came into force on 31 August 2024. It promises investors non-discrimination and access to arbitration [6]. In 2023, the RBI and the UAE central bank signed MoUs on rupee–dirham settlement and on linking UPI with the UAE's payment system [7].
• People-centred links: Connecting UPI with the UAE's AANI system lets over 3 million Indians in the UAE send money home in real time [8].

Role of CEPA: achievements

• Market access: The CEPA was signed on 18 February 2022 and came into force on 1 May 2022. The UAE gives preferential access on over 97% of tariff lines, covering 99% of Indian exports [3].
• Trade surge: Merchandise trade nearly doubled, from USD 43.3 bn (FY21) to USD 83.7 bn (FY24) [4]. Total trade crossed USD 100.06 bn in FY25, up 19.6% [5].
• Diversification: Non-oil trade reached USD 57.8 bn, more than half of total trade [4].
• Review mechanism: The CEPA Joint Committee held its third meeting in November 2025. It reviewed market access, rules of origin and BIS licensing [5].

Role of CEPA: limitations

• Precious-metal skew: How the low-duty gold quota (TRQ) is shared out is still on the Joint Committee's agenda. The 2030 goal is now set as USD 100 bn of non-oil, non-precious-metal trade [5]. This suggests the headline figure includes bullion as well as goods that create Indian jobs.
• Untested frameworks: The benefits of rupee–dirham settlement depend on how many traders actually bill in rupees or dirhams. That uptake has not yet been shown.

India–UAE ties have moved from shared ideals to shared institutions. The CEPA has turned the 1976 phrase "our requirements are similar" into measurable trade. Using the Joint Committee to rebalance the gold quota, and getting more traders to settle in local currencies, would make growth export-led. That would fit SDG 17's call for partnerships for development and fulfil the South–South vision of 1976.