India will not encourage or allow rerouting of domestic goods from the UAE to the US: Goyal

Commerce and Industry Minister Piyush Goyal has said India will not encourage or allow rerouting of domestic goods from the UAE to the US. He said that if Indian goods come to the UAE and are sent to other Asian countries or African nations, or other parts of the region, declaring that they are made in India, it will be a very welcome step. He said India will be looking at creating such pathways.

The remarks are important as the US has imposed a steep 50% tariff on Indian goods entering Washington. It is expected to impact exports of Indian goods from labour-intensive sectors such as shrimp, leather and textiles. Earlier, the commerce ministry had suggested that Indian exporters not export their goods to the US through countries that are facing lower tariffs than India.

The US accounts for about 18% of India's total goods exports and 6.22% in imports, and 10.73% in bilateral trade. The India-US bilateral trade in goods and services stood at $191 billion. It is planned to double it to $500 billion by 2030. Established in 2013, the task force has served as a vital platform for promoting trade and investment ties, identifying new opportunities and resolving investor issues.

The free trade agreement between India and the UAE, which came into force in May 2022, has nearly doubled bilateral merchandise trade from $43.3 billion in 2020-21 to $83.7 billion in 2023-24. The UAE is the seventh largest investor in India. The country has received $24 billion in foreign direct investment from April 2000 to June 2025.