India, UAE look to increase non-petroleum trade to $100 bn
- India’s petroleum exports globally are on a decline due to lack of consumer demand in western countries that have driven prices lower.
New Delhi: Union minister of commerce and industry Piyush Goyal during the first meeting of the joint committee of India-UAE Comprehensive Economic Partnership Agreement said that the two sides have more than doubled their non-petroleum trade target to $100 billion by 2030 from the earlier anticipated $48 billion.
Non-oil exports in FY23 rose by 6% to $23.55 billion compared to $22.18 billion in the previous financial year. Petroleum products exports jumped by a sharp 37.45% in the last financial year to $7.78 billion in FY23 from $22.18 billion driven by imports of cheap Russian oil.
However, India’s petroleum exports globally are on a decline due to lack of consumer demand in western countries that have driven prices lower. Petroleum products exports, which was a key growth driver of overall Indian exports during the last financial year, registered a sharp 23% decline in April compared to the previous month.
“We would like to have the UAE as our principal supplier of petroleum products. India has asked the UAE to increase sourcing of refined petroleum products from India. Third countries’ low quality petroleum products could be refined by Indian refineries,” he said.
“Significant decision has been taken to iron out issues that the businesses had faced…We have a mutually agreed (for a) target of $100 billion bilateral trade by 2030,” Goyal said.
“Both countries have made significant progress on this issue. The central banks are in touch and our finance ministry is very supportive…given the high level engagement of both sides given the active pursuit of working together, not only on a Rupee-Dirham trade but also other digital technologies will become a part of the UAE-India framework. In the coming months we will await for final outcomes very soon,” Goyal said.
In the meeting, it was also decided to set up a new sub-committee to handle issues related to services trade and share services trade data, and an India-UAE CEPA council will be set up to further facilitate the implementation of the agreement.
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Business NewsNewsIndia, UAE look to increase non-petroleum trade to $100 bn
First Published:12 Jun 2023, 11:34 PM IST
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