India-UAE trade deal expected to nearly quadruple bilateral trade to $100 billion in five years

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A comprehensive economic partnership agreement signed by India and the United Arab Emirates on Friday will allow Indian exporters easier access to Arab and African markets, boosting mutual trade from $60 billion today to $1,000 in the world. over the next five years. It aims to reach billions of dollars. The agreement was signed by Commerce Minister Piyush Goyal and Economy Minister Abdullah bin Touk Al-Mali during a virtual summit between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan Signed. According to an official statement.

They said CEPA should help open up new trade routes between Africa and Asia. Officials said the deal will bring significant net benefits to India, especially in labor-intensive industries such as gemstones and jewelry, textiles, leather, footwear, sporting goods, plastics, furniture, agricultural products, industrial products, medical devices and automobiles. . They said 90% of the value of Indian exports to the UAE would enjoy duty-free market access from day one of the deal’s entry into force.

The agreement will bring significant benefits to Indian and UAE companies, including improved market access and reduced tariffs. “The CEPA 9 Comprehensive Economic Partnership Agreement is expected to increase bilateral trade from $60 billion today to $100 billion over the next five years,” he said. Under the terms of CEPA, the Indian exporter will not only gain access to its UAE market, but also provide broader access to much larger Arab and African markets, officials said.

An additional 9% of the trade value of products such as electronics, chemicals, petrochemicals, stone, cement, ceramics and mechanical products will be subject to zero tax within 5-10 years. The UAE is also offering immediate duty relief on more than 80% of customs products accounting for 90% of the value of Indian exports under the regulations. CEPA covers cooperation in trade in goods, rules of origin, trade in services, technical barriers to trade, dispute settlement, telecommunications, customs procedures, pharmaceuticals, digital trade and other areas.

According to Pact, a significant increase in India’s focus areas include IT services, audio visual services, education services, medical services, tourism and travel related services, professional services (nursing, engineering, accounting, etc.). the UAE has pledged to invest heavily in India’s infrastructure.

The officials said that for the first time in a trade agreement, a separate annex on medicines was included to facilitate access to medicines in India. They said CEPA is expected to generate around $26 billion worth of Indian goods. These products are currently subject to a 5% import duty by the UAE. In the services sector, the UAE supplied India with 111 subsectors, while India supplied its UAE with 100 subsectors.

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  • India-UAE trade deal expected to nearly quadruple bilateral trade to $100 billion in five years
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