In the context of the unprecedented boom in two-way trade, India-UAE Comprehensive Economic Partnership Agreement (CEPA) inked on February 18, 2022, completed its third anniversary on Tuesday.
According to the Ministry of Commerce and Industry, the two-way trade virtually doubled to $83.7 billion in the year 2023–24 from $43.3 billion in FY 2020–21.
The announcement of the ministry pointed out the significance of the treaty, which was that the bilateral trade already stood at over $71.8 billion for the first half of the current fiscal year (April–December 2023).
Smartphones, with their export of $2.57 billion to the UAE in FY 2023–2024, have emerged as a top export earner.
Prime Minister Narendra Modi and United Arab Emirates president and Abu Dhabi ruler Sheikh Mohamed bin Zayed Al Nahyan signed the Comprehensive Economic Partnership Agreement (CEPA) virtually. It was implemented from May 1, 2022.
Diversification of trade has been one of the major achievements of CEPA, and during FY 2023–2024, non-oil trade increased to $57.8 billion, or over half of the total trade volume. Bilateral non-oil trade is to be increased to $100 billion by 2030.
Since its launch, around 2,40,000 certificates of origin have been issued under the preferential duties of CEPA, enabling $19.87 billion worth of exports to the United Arab Emirates.
Since its inception, the exports of non-oil products from India have grown immensely to the value of $27.4 billion in FY 2023–2024 with a compound annual growth rate of 25.6%.
Apart from processed crude oil, precious stones and jewelry, all of the following industries have registered growth of high value: electrical machinery and apparatus for machines; light and medium-high technology goods, including reactors, boilers, and generators; and organic and inorganic chemicals.
The two governments have been concerned with exporters' matters through ongoing high-level exchanges and technical meetings since signing the CEPA.
At the Additional Secretary and Joint Secretary levels, the Joint Committee, which is tasked with tracking the implementation of CEPA, has met twice. The Trade in Goods Committee has also met a number of times to talk about issues arising from trade. Both nations have attempted to turn on subcommittees on rules of origin, customs procedures, trade facilitation, and services trade in a move to step up cooperation.
A key initiative in the partnership is the Bharat Mart, established by PM Modi in Dubai, to be one-stop-shop to enable Indian producers to showcase their products in international markets, promoting further exports.
India-UAE CEPA has initiated a new era in economic cooperation and diplomacy,boosting the growth of MSMEs, the creation of employment opportunities, and unlocking new opportunities for business.
India and the UAE are committed to intensifying their economic ties, with CEPA giving the push for trade expansion and new opportunity," the ministry statement added.
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