Who Is India's Third-Largest Trading Partner?

India is a primary exporter and importer for several countries. India exports approximately 7500 commodities to about 192 countries while importing around 6000 commodities from 140 countries.

As per the 2025 Year End Review for the Department of Commerce, India's exports hit an all-time high of $825.25 billion in 2024-25. Speaking of sector highlights, exports in 2024-25 were largely driven by electronic goods, engineering goods, and pharmaceuticals.

As per the Ministry of Commerce and Industry, the top three largest trading partners of India are driving approximately $300 billion worth of total trade in 2024-25. Data shows the US, with approximately $118-132 billion, remained a top partner, followed by China with $104-127 billion. 

But who is the third-largest trading partner of India? Let us learn in this article.

Who is India's third-largest trading partner? 

The United Arab Emirates (UAE) is India's third-largest trading partner, with total bilateral trade reaching approximately $77.6-$100 billion in 2024-25. At the same time, India is the UAE's second-largest trading partner.

The UAE is also often the second-largest export destination for India, with India's exports to the UAE crossing $36.63 billion in 2024-25.

The UAE ranks behind the US and China in total trade. UAE serves as a robust, strategic gateway for Indian trade in the Middle East. 

From $180 million annually trade volume in the 1970s, the bilateral trade between two nations reached its highest level of $100.06 billion in 2024-25.

But until 2015, India and the UAE were locked in a simple buyer-seller model without any strategic depth.

The decisive shift came after the 2015 UAE visit of the Indian PM Narendra Modi, the first in 34-years, that repositioned the UAE as India's major trading hub.

The India-UAE trade partnership was further cemented by the Comprehensive Economic Partnership Agreement (CEPA) which was signed in 2022.

What are major trade items that India-UAE trade basket?

Major trade items that India and the UAE trade include petroleum products, precious metals, gems and stones, food items, chemical and engineering goods, textiles, and jewellery. India and the UAE have seen trade dynamics transitioning from traditinal items such as dates, fishes, and pearls.

In the past few years, the trade relationship between India and the UAE has also expanded to areas such as innovative healthcare, AI, renewable energy, fintech, critical minerals, civil energy, etc.

What are the key targets of India-UAE trade relations?

During the January 2026 official visit of the H.H Sheikh Mohamed bin Zayed Al Nayhan, President of UAE, both countries agreed to double the bilateral trade to $200 billion by 2032.

Both the countries have set eyes on developing the India-Middle East-Europe Economic Corridor (IMEC), the Virutal Trade Corridor, and Bharat Mart in Dubai to promote SME and streamline supply chains, among many other ambitious targets.

Also read: Which Country Is the World's Largest Rice Exporter?