India, UAE seek smooth flow of trade amid W Asia crisis

India’s external affairs minister S Jaishankar and UAE foreign minister Sheikh Abdullah bin Zayed Al Nahyan met in Mumbai to review bilateral relations. Their discussion came as conflict in West Asia created uncertainty for regional transport and trade. Both sides stressed dialogue, diplomacy and restoring peace.

Jaishankar said India supported the free, safe and unimpeded movement of trade, energy and fertilisers. He also thanked the UAE leadership for supporting the well-being of about 4.5 million Indians living there. Sheikh Abdullah said the UAE wanted to strengthen cooperation in trade, culture, education and people-to-people ties.

The meeting covered a broad partnership. Its areas included investments, logistics, technology, defence, energy and education. Jaishankar said cooperation in defence, energy and technology was gaining strategic importance. He and Sheikh Abdullah also discussed closer economic ties after bilateral trade surpassed $100 billion following the 2022 CEPA.

A Comprehensive Economic Partnership Agreement, or CEPA, is a broad trade pact between two countries. It usually reduces or removes selected tariffs, improves market access and sets clearer rules for businesses. These changes can make it easier for companies to sell goods, provide services and build supply chains across borders. The article identifies the India-UAE CEPA as a major foundation of their expanding economic partnership.

India and the UAE signed the agreement in 2022. Jaishankar said bilateral trade surpassed $100 billion after the two sides concluded it. That figure shows the agreement’s importance, although the article does not provide a separate estimate of how much trade growth it directly caused. The pact works by lowering barriers and giving businesses greater confidence about trading conditions.

The CEPA operates within a wider relationship. Investments are growing, while cooperation in energy, technology and defence is becoming more strategic. The UAE is India’s third-largest trading partner after China and the United States. Both governments now want to deepen trade and add stronger links in education, culture and people-to-people relations.

The India-UAE economic relationship is very large and strategically important. The UAE is India’s third-largest trading partner, after China and the United States. Two-way trade is worth more than $100 billion. This scale gives both countries a strong reason to protect transport links and keep commercial exchanges stable during regional crises.

The relationship extends beyond goods. Jaishankar said investments between the countries continued to grow, reflecting business confidence in both economies. Cooperation also covers energy, technology, logistics, defence, education and culture. The two sides signed their CEPA in 2022, and bilateral trade surpassed $100 billion after that agreement.

People are another major connection. Around 4.5 million Indians live in the UAE, making the community an important part of bilateral relations. Jaishankar thanked the UAE leadership for ensuring their well-being. Recent high-level visits, including visits by UAE leaders and Prime Minister Narendra Modi, show that both governments are continuing to strengthen this relationship.

If conflict disrupts ports, shipping lanes or air routes, goods may take longer to reach buyers or fail to arrive altogether. Insurance, fuel and transport costs could rise as carriers avoid dangerous areas. For India and the UAE, this would matter because their trade exceeds $100 billion and their cooperation includes energy and fertilisers.

A practical example is a ship carrying fuel or fertiliser being delayed by unsafe waters. Importers might need to use longer routes or alternative transport, increasing delivery times and costs. If replacement routes are limited, supplies could become less reliable. The article does not predict a specific shortage, but it explains why India supports the free, safe and unimpeded flow of trade, energy and fertilisers.

The current diplomatic response is to support dialogue, diplomacy and efforts to restore peace. India and the UAE are coordinating politically while maintaining their economic partnership. Protecting transport links would help businesses, energy users and farmers avoid sudden disruptions. It would also support the stability of their growing bilateral trade.

The UAE matters because it is already one of India’s biggest economic partners. It is India’s third-largest trading partner, and two-way trade exceeds $100 billion. The relationship also includes growing investments and cooperation in energy, technology, logistics and defence. These links give the partnership importance beyond ordinary buying and selling.

The mechanism is breadth. Trade creates commercial links, investment builds long-term confidence, and logistics helps goods move. Energy cooperation supports a vital supply area, while technology and defence add strategic value. The UAE also hosts about 4.5 million Indians. Jaishankar thanked its leadership for ensuring the community’s well-being, showing that people-to-people ties are central too.

Both governments are now seeking a closer and more diverse relationship. Sheikh Abdullah said the UAE wanted to do more in trade, culture, education and people-to-people ties. Recent visits by senior UAE leaders and Prime Minister Narendra Modi underline this momentum. Continued cooperation could make the partnership more resilient during regional uncertainty.

When conflict threatens transport routes, countries need to keep essential goods moving without exposing ships, aircraft or crews to unnecessary danger. The core approach is coordination. Governments can share security information, support protected corridors, and maintain direct communication with carriers and neighbouring states. Dialogue and diplomacy can also reduce the risk of wider disruption.

Businesses and governments can use alternative ports, shipping lanes, air routes and land links when a major route becomes unsafe. They can also spread cargo across different carriers and transport modes. These steps may cost more, but they reduce dependence on one vulnerable pathway. The article specifically identifies trade, energy and fertilisers as flows that should remain free, safe and unimpeded.

India and the UAE are supporting efforts to restore peace while continuing their bilateral engagement. Their approach combines diplomacy with practical concern about transport and supplies. The article does not describe a specific escort system or alternative corridor. It does show that keeping routes open is central to protecting their more than $100 billion trading relationship.

A CEPA reduces barriers that make international business expensive or uncertain. It can lower tariffs, improve access to markets and establish clearer rules for goods, services and investment. These measures help companies calculate costs more confidently. They can also make products more competitive and encourage businesses to consider longer-term partnerships.

For example, a company may invest in production, distribution or logistics when it expects easier access to the partner country’s market. The agreement provides the mechanism: lower barriers can increase trade, while clearer commitments reduce uncertainty. India and the UAE signed their CEPA in 2022. Jaishankar said bilateral trade surpassed $100 billion after the two sides signed it.

The article also reports that two-way investments have continued to grow, reflecting business confidence in each other’s economies. It does not provide separate figures proving how much investment came specifically from the CEPA. Still, the agreement sits within a wider partnership covering energy, technology, defence, logistics, education and people-to-people ties.