Trade

Exports to India from UAE more than double in November

December 18, 2024, 2:54 PM

India UAE exports — India's imports of gold, some of it from the UAE, were worth $14.8bn in November

Demand for gold soars
Imports from India also up
December drop predicted

Exports to India from the UAE more than doubled year on year to over $6 billion in November, as demand for gold and energy products soared.

Imports from India were up by over 11 percent in the same month, reaching $3 billion, data released by India’s commerce ministry showed.

Emirati exports to India from April to November 2024 grew just over 60 percent compared to the same period last year, the highest growth rate of any of India’s trading partners.

In May 2022 the free trade deal between India and the UAE came into effect, removing four fifths of tariffs on goods from both countries, with the aim of eventually eliminating all tariffs within 10 years.

Since the introduction of the free trade agreement, trade between the two countries has grown, with UAE crude exports to India increasing by 54 percent in 2024.

UAE agrees to review India’s precious metal export concerns

“The UAE is an important strategic partner with whom India has alignment, and that keeps India’s interests in mind, both regionally and globally,” Aparna Pande, director of the Initiative on the Future of India and South Asia at the US-based Hudson Institute, told AGBI.

“So India has an incentive to ensure that the commercial aspect of the relationship deepens.”

However “the only constraint will, as always, be India’s natural protectionist impulses and a highly regulatory state,” Pande added.

Indian gold imports in particular surged during November, with the country importing $14.8 billion of the precious metal, including some from the UAE.

Prithviraj Kothari, president of the India Bullion and Jewellers Association, told Reuters that imports “shot up thanks to strong demand for investment and jewellery”. He added that it was now “cooling off, and imports are slowing down. We might see a drop of over 50 percent in December.”

For more economic and demographic statistics, go to our UAE economy page

But Pande added that while Indian demand for Emirati gold may drop from seasonal highs, it will remain strong.

“When the economy isn’t doing well, people buy gold, as they see it as a greater surety than currency. So yes, once the wedding season concludes there will be a drop — but Indians love gold, so by and large the demand will remain,” Pande said.

Diamonds, plastics, and metals such as copper and aluminium also make up a significant proportion of UAE exports to India.

The UAE imports significant amounts of refined fuel products from India, and also precious metals, diamonds, and machinery, among other goods.