During the 13th India-UAE High Level Task Force on Investments (HLTFI) in Abu Dhabi, Commerce and Industry Minister Piyush Goyal announced that India will not permit the transshipment of its domestic goods through the United Arab Emirates (UAE) to the United States. This statement addresses concerns over potential tariff evasion, as the US has imposed a hefty 50% tariff on select Indian imports, impacting labor-intensive sectors like shrimp, leather, and textiles.

Goyal clarified that India welcomes the export of its goods through the UAE to other Asian, African, or regional markets, provided they are labeled as "Made in India." However, he emphasized, "We do not encourage any Indian exporters to trans-ship goods to America. At no point in time would we like to see or encourage or even allow Indian exports to go to America from the UAE." This stance aligns with prior Commerce Ministry guidance urging exporters to avoid routing goods through countries with lower US tariffs.

The US accounts for 18% of India’s goods exports and 6.22% of imports, with bilateral trade in goods and services reaching $191 billion. Both nations aim to escalate this to $500 billion by 2030.

Meanwhile, the India-UAE Comprehensive Economic Partnership Agreement (CEPA), effective since May 2022, has driven bilateral merchandise trade from $43.3 billion in FY21 to $83.7 billion in FY24. The UAE, India’s seventh-largest investor, has contributed $24 billion in foreign direct investment from April 2000 to June 2025.

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The HLTFI, established in 2013, continues to strengthen India-UAE economic ties by fostering investment and resolving trade issues. Goyal’s firm position underscores India’s commitment to transparent trade practices while navigating global tariff challenges and reinforcing strategic partnerships.

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