Abu Dhabi Economic ties between the UAE and India have seen remarkable growth in recent years, underscoring a strategic partnership that is expanding across key sectors such as trade, investment, energy, and technology, according to Emirates News Agency (WAM).
No longer limited to trade, the relationship now includes deep investment partnerships and joint projects that are shaping a more integrated and forward-looking economic collaboration.
On the investment front, the UAE invested $2.9 billion in India during the 2023–2024 fiscal year, making it India's seventh-largest investor.
India’s economic growth remains strong compared to the majority of emerging markets. Projections indicate the economy is on track to grow by an average of 6.5 percent per year between 2025-26, positioning India among the world fastest-growing major economies.
Three main drivers
This growth is anchored on three main drivers: government-led infrastructure investment, rising rural demand supported by strong agricultural output, and increased private investment, particularly in infrastructure-linked and export-oriented industries.
Inflation is also expected to ease, with consumer price inflation forecast to decrease to 4.3 percent in 2025 as global commodity prices moderate and supply bottlenecks ease, reducing from 4.9 percent in 2024.
India’s expanding manufacturing base, especially in electronics and pharmaceuticals, supports a favorable outlook for 2026-29.
