'The deal is done': India signs 'pathbreaking' India-UAE CEPA; eyes $100bn trade
The agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs. The CEPA will boost bilateral trade from the current $60 billion to $100 billion in the next 5 years
Union minister of commerce and industry Piyush Goyal today said both India and UAE are entering a golden era of economic and trade cooperation with the signing of the India-UAE CEPA (Comprehensive Economic Partnership Agreement).
The formal talks over CEPA started in September 2021. The trade deal between India and UAE bears significance as the heads of both the countries, Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed al Nahyan, will now hold another round of talks over economic and trade cooperation.
India-UAE CEPA trade deal:
CEPA is expected to create new jobs, raise living standards, and provide wider social and economic opportunities in both nations. The new strategic economic agreement will increase bilateral trade in goods to $100 billion in five years of the signed agreement and increase trade in services to $15 billion, a statement released during the launch of formal trade tasks back in September 2021 said.
Notably, the UAE is currently India’s third-largest trading partner with bilateral trade in 2019/2020 valued at $59 billion. The UAE is also India’s second-largest export destination after the US, with exports valued at $29 billion in 2019-2020. India was the UAE’s second-largest trading partner in 2019, with bilateral non-oil trade valued at $41 billion.
The UAE is also the eighth-largest investor in India, having invested $11 billion between April 2000 and March 2021, while investment by Indian companies in the UAE is estimated to be over $85 billion.
India's major exports to UAE:
India's major exports to the UAE include petroleum products, precious metals, stones, gems and jewellery, minerals, food items such as cereals, sugar, fruits and vegetables, tea, meat, and seafood, textiles, engineering and machinery products, and chemicals.
India's top imports from the UAE include petroleum and petroleum products, precious metals, stones, gems and jewellery, minerals, chemicals and wood and wood products. India imported $10.9 billion of crude oil from the UAE in 2019-2020.
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