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Abstract India and United Arab Emirates having a wide range of bilateral trade relationship since time immemorial in various sectors like cultural, religious, political, economic and commercial. This relationship is accelerated when the United Arab Emirates, the federation of UAE came into existence after the unity of seven emirates on 2nd December,1971 under the leadership of His Highness Sheikh Zayed Bin Sultan Al Nahyan. Eventhough, India is having good trade and economic relations with different emirates of United Arab Emirates in the ancient period, presently India is having a good strategic trade relationship with UAE in trade and commerce and UAE became a strategic partner of India in the international regime. All the recent trends in strategic exchanges showing that India is considering UAE as a very important strategic and vital partner in the Arab world resulting in the flow of the Foreign Direct investment in various sectors. UAE is an important trade partner having an increased investment of Foreign Direct Investment (FDI) around 81.2% of the total FDI of Arab countries in India. Now UAE is one of the largest market for Indian products (possessing 1st or 2nd position in export) for the last two decades.