Non-Oil trade between India and Dubai hits US$19 billion marking 74 percent annual increase India top export and re-export destination for Dubai and second largest source of imports- press release from consulate general of India

Jun 02, 2008

Press Release issued by the Consulate General of India Dubai on June 2, 2008

In an informal interaction with journalists, Consul General of India, Venu Rajamony said in 2007 India was the top export and re-export destination for Dubai and second largest source of imports.

Non-oil trade between India and Dubai for the year 2007 hit a record high of US$ 19 billion. This constitutes approximately 80% of the total India–UAE trade and a 74% increase over the figure of US$ 10.9 billion for the year 2006.

An analysis of statistics released by Dubai Customs conducted by the Consulate General of India, Dubai shows that imports from India to Dubai increased by 55% from US$ 6.4 billion in 2006 to US$ 9.9 billion in 2007. Exports from Dubai to India increased 113%, from US$ 1.5 billion in 2006 to US$ 3.2 billion in 2007. Re-exports from Dubai to India increased by 97% i.e. US$ 3 billion in 2006 to US$ 5.9 billion in 2007. The fact that re-exports from Dubai was almost double of its exports reflects the significance of Dubai as trans-shipment point for Indian trade.

The major commodities imported from India to Dubai were precious & semi-precious stones and precious metals valued at US$ 5.8 billion. Top three commodities consisted of (a) precious & semi-precious stones and precious metals, (b) Cereals and (c) Copper & articles thereof. Of the total imports of US$ 9.9 billion, the value of the aforementioned top three commodities came to US$ 6.6 billion. In the year 2007, imports of Dubai from India was the second largest after China, and the percentage of India’s share in the imports of Dubai went up from 10.6% in 2006 to 12.2%.

Of the total exports of US$ 3.2 billion from Dubai to India, US$ 2.7 billion comprised of precious & semi-precious stones and precious metals. The top three commodities exported from Dubai to India were (a) precious & semi-precious stones and precious metals, (b) Steel, and (c) Aluminium & articles thereof. US$ 3 billion of the US$ 3.2 billion exports from Dubai to India were made of the aforementioned top three commodities. India, like in the year 2006, remained the largest export destination from Dubai in 2007. India’s share in the exports from Dubai increased from 30% to 42% over one year.

Total re-exports of US$ 5.9 billion from Dubai to India, included US$ 5.5 billion of precious & semi-precious stones and precious metals. The top three major commodities were (a) precious & semi-precious stones and precious metals, (b) Boilers, Machineries & parts thereof, and (c) edible fruits and nuts. Re-exports of the top three commodities totalled US$ 5.7 billion. India has emerged as the largest re-export destination of Dubai in 2007, with Iran in second position. The percentage share of India in the re-exports from Dubai went up from 13.9% in 2006 to 21.6% in 2007.

Total trade between Dubai and India over a period of 5 years, from 2003 to 2007 has increased from US$ 3.5 billion to US$ 19 billion reflecting an increase of 443%. Imports into Dubai from India rose over five years from US$ 2.6 billion to US$ 9.9 billion which is an increase of 281%. Exports from Dubai to India increased from US$ 0.1 billion to US$ 3.9 billion which is an increase of 3100% in the last five years. Re-exports from Dubai to India increased over five years from US$ 0.8 billion to US$ 5.9 billion which is an increase of 638%.

Analysis of trade statistics released by Sharjah Customs shows that total non-oil trade between India and Sharjah in the year 2007 is estimated at US$ 2.1 billion constituting an increase of 10.5% over the figure of US$ 1.9 billion in the year 2006. Imports into Sharjah from India in the year 2007 were US$ 1.8 billion which was an increase of 5.9% over the previous year. Exports including re-exports from Sharjah to India were US$ 0.3 billion in the year 2007 which is an increase of around 50% over 2006.

India has the largest presence amongst foreign countries in terms of the companies registered with Dubai Chamber of Commerce and Industry. The number of Indian companies registered is 12,359 out of about 101,000 companies registered with the said Chamber as of February 2008. 6,154 Indian companies are registered with Sharjah Chamber which is 18% of the total of 33,103 companies registered with the said Chamber. Jebel Ali Free Zone Authority has 575, RAK Free Trade Zone has 681, Ras Al Khaimah Investment Authority has 300 and RAK Chamber of Commerce has 1227 registered Indian companies as of May 2008. Approximately 60% of the companies in the Fujairah Free Trade Zone are from India.