Abu Dhabi: Commerce and Industry Minister Piyush Goyal made it clear that India will not support rerouting its goods from the UAE to the US. He stated that while Indian goods can come to the UAE and travel to other countries in Asia or Africa, they cannot be labeled as “made in India” if they are headed to the US.
During the 13th India-UAE High Level Task Force on Investments, Goyal emphasized that Indian exporters should avoid sending goods to the US through other countries to bypass tariffs. This is crucial, especially since the US recently imposed a hefty 50% tariff on Indian products, which may hurt sectors like shrimp, leather, and textiles.
The US is a significant trade partner, accounting for about 18% of India’s exports. In 2020-21, trade between India and the US reached USD 191 billion, with plans to double it to USD 500 billion by 2030. The free trade agreement with the UAE, established in May 2022, has already increased bilateral trade from USD 43.3 billion to USD 83.7 billion in just two years.
Experts note that these regulations aim to protect domestic industries and ensure fair trade practices. Additionally, the UAE has become an essential partner for India, being its seventh-largest investor, contributing around USD 24 billion in direct investments over the past two decades.
As trade dynamics shift globally, India is keen on creating robust pathways for exports, focusing on legitimate channels and fair practices.
For more detailed insights on trade relations, you can refer to this US-India trade report.
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UAE, DOMESTIC GOODS, PIYUSH GOYAL, INDIA WILL NOT ALLOW REROUTING OF DOMESTIC GOODS FROM UAE TO US: GOYAL
