1. INDIA-UAE TRADE RELATION
Business Environment
INDIA – UAE TRADE RELATION

2. INDIA-UAE TRADE RELATION
Background of India
• It is the Seventh largest country by area
• The Second most populous country (1.2billions)
• Capital :- Delhi
• GDP growth Rate:- 6.5%(2011-2012)
• GDP :-US $1.848 trillion
• 3rd largest in terms of purchasing power parity (PPP)
• Service based economy (contributes 55% to GDP)
• HDI :- Rank 134th/187

3. INDIA-UAE TRADE RELATION
Background of U.A.E
• 7 Emirates :- Abu-Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah,
Sharjah, Umm Al Qaiwain (1972)
• Population :- 7.891 millions
• Capital :- Abu Dhabi
• GDP growth Rate :- 3.5 %
• GDP :-US $360.25 trillion
• HDI :- Rank 30th/ 187
• Currency is Dirham
• Manufacturing based economy
• It ranked as a world’s seventh largest oil reserve

4. INDIA-UAE TRADE RELATION
Introduction
• Bilateral trade relations
• The discovery of oil allowed the UAE to increase and
diversify its trade relations with India
• UAE is home to more than 1.75 million Indian, expatriates
making Indians the second largest ethnic group in the Arab
nation.
• In 2008-09, India emerged as the largest trade partner of the
UAE with bilateral trade between the two countries
exceeding US$44.5 billion
• During the first half of 2010, non-oil trade between India
and the UAE stood at US$20.4 billion

5. INDIA-UAE TRADE RELATION
Business Environment in UAE
• U.A.E. possesses 10% of world’s crude oil reserves,
which will last for more than 100 years.
• U.A.E. is a free trade zones are home to more than
6400 companies with an estimated trade of around US$
8 billion.
• U.A.E. has easy access to 1.5 billion consumer markets
situated in Africa, West Asia and East Europe as well as
the areas around the Red Sea and the Gulf.

6. INDIA-UAE TRADE RELATION
Business Environment in UAE
• No Corporate Tax and Income Tax
• No Personal Income Tax
• No foreign exchange controls
• Dubai Internet city - Oracle, IBM, HP, Cisco
• Dubai media city –CNN,AP.

7. INDIA-UAE TRADE RELATION
INDIA – UAE Bilateral relations
•The Indian community is the largest expatriate community
in the UAE, numbering about 1.5 million.
•UAE emerging as the second largest market globally for
Indian products.
•India imports 4.8% of U.A.E.’s export.
•U.A.E imports 10% of India export.
•A large portion of India’s exports to the UAE is
transshipped from Dubai to other countries

8. INDIA-UAE TRADE RELATION
INDIA – UAE Bilateral relations
• Cultural Cooperation Agreement
• Double Taxation Avoidance Agreement
• Agreement to Combat Trafficking
• Extradition Treaty
• MoU on Manpower Sourcing
• MoU between Sebi and Dubai regulatory agency

9. INDIA-UAE TRADE RELATION
India export to U.A.E
• Cotton accessories
YEARS AMOUNT INCREASE/DEC
• Gems and jewelry (IN RS. REASE
CRORES)
• Man-made yarn and fabrics 2009-10 113348 2.82%
Increase
• Marine products 2008-09 110229 42.92%
Increase
2007-08 62915 13.46%
• Machinery and instruments Increase
• Plastic and linoleum
• Tea

10. INDIA-UAE TRADE RELATION
India imports from U.A.E
• Mineral fuels
YEARS AMOUNT INCREASE/DEC
• Mineral oils (IN RS. REASE
CRORES)
• Pearl and precious stones 2009-10 91799 15.38%
Decrease
• Gold
2008-09 105926 48.80%
• Pulp and Paper Waste Increase
2007-08 54233 27.76%
• Sulphur and unroasted iron pyrites. Increase
• Metal Scrap
• Organic and inorganic chemicals
• Electrical machinery and equipment

11. INDIA-UAE TRADE RELATION
JOINT VENTURES
• This joint venture with Rani International, the real estate
development subsidiary of the Saudi-based Aujan Group, will
consist of a 249-key luxury hotel operated by The Oberoi
Group
• DLF and Nakheel, signed a 50:50 joint venture for two
integrated townships spread across 40000 acres in India

12. INDIA-UAE TRADE RELATION
FDI INVESTED IN U.A.E
• India is also the 3rd largest investor in U.A.E
• Major Investment sectors are
– Agriculture(3.6%)
– Crude oil(22.4%)
– Manufacturing(12.4%)
– Electricity and Water(1.7%)
– Construction(9.4%)
– Commerce, restaurants and hotels(13.7%)
– Transport, storage and communications(7%)
– Financing & insurance (6.7%)
– Real estate(10.5%)
– Government services(11.8%)
• Prominent India companies such as L&T, Punj Lloyd
Hinduja Group, Pioneer Cement, Oberoi Group of Hotels

13. INDIA-UAE TRADE RELATION
MAJOR INDIAN COMPANIES IN U.A.E
• Larsen &Toubro (L&T) $639-million
Hydrocarbon projects (crude oil) & gas line projects in
UAE
• Pioneer cement ltd (for quality cement in construction)
• Wipro (Business and Technology Consulting, IT
Services, IT Solutions, Business Process
Outsourcing(BPO)
• TATA MOTORS (automobiles)

14. INDIA-UAE TRADE RELATION
FDI INVESTED IN INDIA
• U.A.E. has invested over USD 5 billion in India through
FDI and FII routes
• Tenth biggest investor in terms of FDI
• Major Investment sectors are –
Energy (19.1%)
Services (9.3%)
Programming (7.8%)
Construction (6.8%)
Tourism and Hotels (5.6%)
• Prominent UAE companies such as DP World,
EMAAR, Al Nakheel, ETA Star Group.

15. INDIA-UAE TRADE RELATION
MAJOR U.A.E COMPANIES IN INDIA
• DP World (Rs 1,200 crore for setting up the International
Container Transshipment Terminal (ICTT)
• Emaar (invest $150 million in real estate)
• ETA Star Group to invest $1Bn in India

16. INDIA-UAE TRADE RELATION
Defense relations
• An Agreement on Joint Defense Cooperation was
signed by the two sides during June 2003. There was
agreement that the 'Strategic Dialogue' would be held
annually.
• India has been training U.A.E. defense personnel in
various disciplines at its specialized institutions
• At the first JDCC Meeting in April 2006, both sides
agreed to support defense exhibitions in each country
by deputing its platforms and personnel.
• As a follow up of the meeting of the JDCC in April
2006 several steps were taken
 Enhance participation in training programmes
 Exchange of visits by service Chiefs
 Visits of Naval Ships and Coast Guard
 Cooperation in defense production industries

17. INDIA-UAE TRADE RELATION
FUTURE
• Recent visit : The president of India visited U.A.E. from 21st to 25th
November 2010
• Agreement on security cooperation, counter-terrorism and maritime security
• Specific proposals focusing on education, science and technology and
regional security
• An important area of cooperation, food security
• U.A.E. to invest in projects for enhancing agricultural production in India,
especially in the area of food processing
• India-U.A.E. relations have been traditionally warm and friendly and based on
continuity, trust and confidence without any irritants. This is likely to continue

18. INDIA-UAE TRADE RELATION
FUTURE
• Labor welfare
• U.A.E. to participate in activities in the petroleum sector to
strengthen India's energy security, as well as in the
infrastructure sector, including in the Railways.
• Simultaneously, the U.A.E. assured India that it would back
New Delhi's efforts for a permanent seat in the United
Nations Security Council.

19. INDIA-UAE TRADE RELATION
ARTICLES

20. INDIA-UAE TRADE RELATION