India is likely to express concerns regarding the rules of origin under the India-UAE trade agreement following a notable surge in silver imports from the UAE. The rules of origin dictate the source of goods to ensure they qualify for preferential trade terms.

The media was notified by India’s Minister of Commerce and Industry, Piyush Goyal, that these issues will be discussed at a joint task force meeting in the UAE the following week, following the 12th meeting of the India-UAE High-Level Joint Task Force on Investments in Mumbai. The meeting was co-chaired by Goyal and the Managing Director of the Abu Dhabi Investment Authority (ADIA), Sheikh Hamed bin Zayed Al Nahyan.

India’s imports of silver from the UAE climbed by 5,853% from $29 million in FY23 to $1.74 billion in FY24.

With the launch of the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates in May 2022, bilateral trade has surged.

Trade in goods and services between the two countries reached $28.2 billion in the first two quarters of 2024, an increase of 9.8% from the previous year.

With the UAE having invested $3.35 billion, a threefold increase over the previous year, across a number of sectors, the UAE became the fourth-largest foreign investor in India in 2023 thanks to the deal, which also boosted foreign direct investment (FDI).

Nevertheless, in 2023, India’s FDI into the United Arab Emirates (UAE) surpassed the combined amount of the two years prior, totalling $2.05 billion.

In regards to the implementation of rules of origin for silver imports, Goyal continued, he had already discussed the matter with his counterpart in the UAE, who had assured him that no changes to the trade agreement would be made that would be detrimental to India’s business interests.

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