India blocks goods rerouting from UAE to US: Goyal

Abu Dhabi, Sep 18 (PTI) Commerce and Industry Minister Piyush Goyal on Thursday 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.

India will be looking at creating such pathways, he told reporters here.

Goyal is here for the 13th India-UAE High Level Task Force on Investments (HLJTFI).

"We do not encourage any Indian exporters to trans-ship goods to America. So at no point in time would we like to see or encourage or even allow Indian exports to go to America from the UAE," he said.

The remarks are important as the US has imposed a steep 50 per cent 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 to Indian exporters not to export their goods to the US through countries which are facing lower tariffs than India.

The US accounts for about 18 per cent of India's total goods exports and 6.22 per cent in imports, and 10.73 per cent in bilateral trade.

The India-US bilateral trade in goods and services stood at USD 191 billion. It is planned to double it to USD 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 USD 43.3 billion in 2020-21 to USD 83.7 billion in 2023-24.

The UAE is the seventh largest investor in India. The country has received USD 24 billion in foreign direct investment from April 2000 to June 2025.