Reducing operational friction, not just eliminating tariffs, is the key to unlocking the full potential of India-UAE trade, Prof. Dr. Gourav Vallabh, Part-Time Member of India’s Economic Advisory Council to the Prime Minister (EAC-PM), told industry leaders at Dubai’s Future Food Forum 2025.
While the Comprehensive Economic Partnership Agreement (CEPA) has helped drive non-oil trade to $37.6bn in H1 2025, achieving the ambitious $100bn target will require deeper market integration and streamlined supply chains.
Speaking to industry leaders and government officials, including UAE’s Minister of Economy Abdullah bin Touq, Dr. Vallabh, who brings extensive experience in financial policy and economic governance, revealed that non-oil trade reached $37.6bn in H1 2025, marking a 34% year-on-year increase. While substantial, this growth rate suggests additional measures are needed to achieve the partnership’s ambitious goals.
The UAE’s $2bn commitment to develop integrated food parks across India emerged as a centerpiece of the bilateral strategy, with plans to expand investments to $7bn. These facilities will incorporate state-of-the-art processing units and climate-controlled storage, establishing a farm-to-port infrastructure designed to minimize waste and ensure reliable supply chains.
“CEPA provides the framework, but reducing friction is the real multiplier,” Dr. Vallabh emphasized, referring to the Comprehensive Economic Partnership Agreement that eliminates tariffs on approximately 80% of goods between both nations. Early successes include expedited laboratory certifications and the operationalization of Bharat Mart as a bonded logistics hub in Dubai.
A notable development is the establishment of joint strategic reserves, with plans for 6-9 month buffer stocks in bonded hubs to protect against global supply disruptions. This initiative aligns with the UAE’s Food Security Strategy 2051, which aims to achieve global top ranking and triple domestic food output by 2030.
Despite CEPA’s framework, Dr. Vallabh identified key operational hurdles hindering trade growth, including regulatory misalignment in food safety standards and limited integration of supply chains between the two nations.
“While we have eliminated tariffs on paper, many exporters struggle with complex certification requirements and lack the capacity to fully leverage CEPA provisions,” he explained, noting that UAE institutional capital can be further strengthened in India’s agri-food processing and logistics sectors.
The absence of centralized monitoring systems and fragmented oversight further complicate progress tracking, Dr. Vallabh added, calling for a dedicated committee to streamline these processes. “We need robust data dashboards to track trade flows and supply chain efficiency, moving from reactive adjustments to strategic planning.”
To address these issues, the partnership is prioritizing strategic food reserves utilizing India’s surplus production, while advancing climate-smart agriculture that combines UAE’s expertise in hydroponics with India’s organic farming strengths and establishing joint food processing units to enhance export potential.
The collaboration also emphasizes infrastructure development leveraging UAE investment, alongside comprehensive technology transfer and capacity building programs.
The initiative extends beyond bilateral benefits, positioning itself as a blueprint for South-South cooperation. “India contributes scale, the UAE provides capital and hubs – together we can export South-South corridors that de-risk the most vulnerable supply chains,” Dr. Vallabh explained.
The speech highlighted how recent initiatives like the UAE’s “Plant the Emirates” program complement India’s focus on sustainable agriculture, creating opportunities for knowledge exchange in climate-friendly farming practices.
Looking ahead, Dr. Vallabh called for the formation of a dedicated committee to address operational challenges and monitor progress through centralized dashboards tracking trade flows, buffer stock levels, and efficiency metrics.
The Future Food Forum, coinciding with the UAE’s Year of Community, provided a platform to showcase how the partnership has evolved from traditional trade relations to a comprehensive framework for food security and agricultural innovation, observed Dr. Vallabh.
As global food systems face increasing pressure from climate change and supply chain disruptions, the India-UAE partnership offers a model for cross-border collaboration in building resilient food networks, he noted. However, the gap between current trade volumes and targeted goals suggests significant work remains in translating policy frameworks into operational success.
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