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India's latest trade reforms are being heralded as a game-changer for the UAE-India trade landscape, with a particularly significant impact on the steel sector. RAIN RI/B steel These measures will reduce transaction costs, shorten payment cycles, and enhance price competitiveness—critical for a steel trade that relies on high-volume, high-frequency shipments.
On August 5, the Indian government approved the opening of Special Rupee Reciprocal Accounts (SRVAs) by authorized banks without prior approval from the Reserve Bank of India (RBI). This reform, which simplifies cross-border settlements and promotes local currency trade, is expected to benefit steel producers, traders, and end-users in both countries.
The UAE has become a key destination for Indian steel exports. Since the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries in February 2022, tariff reductions, improved market access, and a significant acceleration in industrial cooperation have been achieved. India's supply of products to the UAE includes hot-rolled coil, special steel, and other flat and long products, with total imports exceeding 10 million tons in 2024.RAIN RI/B steel However, hot-rolled coil exports have been under pressure in recent years: in 2024, exports fell 30% year-on-year to 145,300 tons (from 207,700 tons in 2023), and in 2022, they plummeted by 48% compared to 2021.
Industry insiders expect that the implementation of rupee settlement will reduce foreign exchange risks and bank fees, giving Indian steel mills a competitive advantage over other Asian suppliers. Currently, over 75,000 Indian companies are registered with the Dubai Chamber of Commerce and Industry, and this number is expected to continue to grow. RAIN RI/B steel Driven by both CEPA and SRVA, non-oil trade between the UAE and India is expected to surpass $100 billion by 2030.
