India seen overtaking Japan to become UAE’s largest export market

ncs_modified20161215172215maxw640imageversiondefaultar-161219397India is set to overtake Japan as the UAE’s largest merchandise trade partner over the next decade and half, according to a forecast by HSBC.

The bank, in its United Arab Emirates Trade Report, part of a biannual look at global trade patterns, said that India’s growing thirst for energy will see it become the UAE’s largest trading partner by 2030, with other factors such as UAE’s drive to invest directly in India as well as to capture a greater share of the Asian tourism market, also propelling trade growth between the two countries.

“We expect India to overtake Japan to become the largest export destination, given its growing demand for energy from strong economic and population growth,” the HSBC report said.

“Long-standing cultural and commercial links with India will be boosted by recent efforts to strengthen political ties,” it added.

The bank was apparently referring to the high profile three-day visit last February by Sheikh Mohammed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, to New Delhi to visit prime minister Narendra Modi, accompanied by a delegation of seven ministers and 60 UAE based entrepreneurs, two-thirds of whom were of Indian origin.

The UAE committed to invest up to US$75 billion in Indian infrastructure. This year, that has included an “anchor” investment stake in Mahanagar Gas, which is developing gas supply systems in Mumbai, plus a $150 million stake in Greenko, an India-based renewable energy firm.

 

 

 

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