New Delhi:  Commerce and Industry Minister Piyush Goyal on Thursday clarified that India will not permit rerouting of its exports to the United States through the United Arab Emirates (UAE), amid rising concerns over the steep US tariffs on Indian goods.

Speaking to reporters during his visit for the 13th India-UAE High Level Task Force on Investments (HLJTFI), Goyal said India encourages trade flows from the UAE to other Asian, African, and regional markets under Indian branding, but not trans-shipment to the U.S. 

“We do not encourage any Indian exporters to trans-ship goods to America. At no point in time would we like to see or even allow Indian exports to go to America from the UAE,” he stated, reported PTI.

The comments come against the backdrop of a 50 percent tariff imposed by Washington on Indian goods, which is expected to hit exports from labour-intensive sectors such as shrimp, leather, and textiles. 

The commerce ministry had earlier advised exporters against routing shipments through countries facing lower tariff barriers than India.

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into effect in May 2022, has nearly doubled bilateral merchandise trade from USD 43.3 billion in FY 2020–21 to USD 83.7 billion in FY 2023–24. 

The UAE is also a key investor in India, with cumulative foreign direct investment inflows of USD 24 billion between April 2000 and June 2025.

Established in 2013, the HLJTFI has emerged as a key platform for deepening trade and investment cooperation, identifying opportunities, and resolving investor concerns between the two countries.