A brief on India-Dubai Trade

Brief on Trade Between India and Dubai & Northern Emirates
Dubai is very important trade partner of India. 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.

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’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.

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.

Dubai’s non-oil foreign trade volume (including free zones and customs warehouses), jumped 46 percent in the first quarter of 2008, reaching Dh 214 billion (around $ 39.9 billion) registered during the same period in 2007. During the period under review, Dubai’s export recorded a phenomenal growth, soaring by 79 percent, while re-exports went up by 73.5 percent and imports grew by 49.7 percent. India topped the list of Dubai’s direct import destination in the first quarter of 2008 with a share of 13.14 percent of total imports worth Dh 12.6 billion. As for Dubai’s exports, India again topped the list with 45.7 percent, of the total exports worth Dh 4.7 billion during the first quarter of 2008. India maintained its position the largest re-exports destination with 31.8 percent (Dh11.9 billion) out of the total re-exports in the first quarter of 2008.

His Highness Sheikh Mohammad Bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, during his historic two-day State visit to India on 25-26 March 2007, stated that he would like the UAE to be the top trading partner of India. India recently announced foreign trade policy in April 2007 which is expected to give a further big boost to the country’s trade with the UAE and other GCC countries. The first meeting of the UAE-India Trade Policies Forum was held in New Delhi in last week of May 2007, reiterating the need to over-come all impediments regarding the bilateral trade between UAE and India. The meeting of trade policies forum comes in line with a host of activities aimed at boosting strategic partnership asserted by His Highness Shaikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the UAE and Ruler of Dubai, during his recent visit to India. The meeting headed by UAE Economy Minister Shaikha Lubna Al Qasimi and the Commerce & Industry Minister Kamal Nath also stressed the need to find more ways to help increase bilateral trade and investments. The Indian side requested for more branches of Indian banks in the UAE, lifting the ban on the import of Indian Poultry in UAE and easier export of Indian pharmaceutical products to UAE. Shaikha Lubna sought relaxation in certain anti dumping measures taken by India on certain products from the UAE.