Prime Minister Narendra Modi and Crown Prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan held a Virtual Summit earlier today. Both leaders expressed deep satisfaction with the continuous growth in bilateral relations in all sectors.
Terming the India-UAE Comprehensive Economic Partnership Agreement (CEPA) as a game-changer in economic ties, Prime Minister Narendra Modi said that deal will help enhance bilateral trade in goods to USD 100 billion and services to USD 15 billion in the next 5 years.
“HH @MohamedBinZayed and I believe that the India-UAE CEPA signed today will be a game-changer in our economic ties. With enhanced market access, bilateral trade in goods should rise to $100 billion and services to $15 billion in the next 5 years,” PM Modi tweeted.
Prime Minister Narendra Modi and Crown Prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan held a Virtual Summit earlier today. Both leaders expressed deep satisfaction with the continuous growth in bilateral relations in all sectors.
Prime Minister and the Crown Prince issued a Joint Vision Statement “Advancing the India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone”.
The Statement establishes a roadmap for a future-oriented partnership between India and UAE and identifies focus areas and outcomes. The shared objective is to promote new trade, investment and innovation dynamic in diverse sectors, including economy, energy, climate action, emerging technologies, skills and education, food security, healthcare and defence and security.
External Affairs Minister (EAM) S Jaishankar called this meeting a “landmark Indo-UAE Summit” and said this will take bilateral ties to a new level. “Our relationship has a larger significance, reflected in the Quad with Israel and US,” Jaishankar tweeted.
This is the fastest FTA to be negotiated between any two countries in less than 3 months and India’s first comprehensive trade agreement in a decade.
This will help to unlock new trade routes between Africa and Asia. Through this deal, Indian exporters will gain market access in the UAE but also provide wider access to the much larger Arab and African markets.
This will help with substantial net gains for India, particularly in labour-intensive industries – Gems and Jewellery, Textiles, Leather, Footwear, Sports goods, Plastics, Furniture, Agricultural and wood products, Engineering products, Pharmaceuticals and medical devices, and Automobiles.
The deal is mutually beneficial and boosts bilateral trade (goods) to $100 billion over five years and $15 billion (for services), almost double of pre-pandemic levels.
This agreement will help achieve zero duty from day one of the entry into force of the Agreement, accounting for 90% of India’s exports to UAE in value term. Moreover, zero duty within 5 to 10 years on an additional 9% of our trade value for the following products: Electronic Goods, Chemicals and Petrochemicals, Articles of Stone, Cement, Ceramics, Machinery.
Through this deal, UAE is offering immediate duty elimination on over 80% of its tariff lines corresponding to 90% of India’s exports in value terms. It also covers Trade in Goods, Rules of Origin, Trade in Services, Technical Barriers to Trade, Dispute Settlement, Telecom, Customs Procedures, Pharmaceutical, IPR, Digital Trade and Cooperation in other areas.
For the first time in a trade agreement, a separate Annex on Pharmaceuticals has been incorporated to facilitate access of Indian pharmaceutical products.
Moreover, India-UAE CEPA is likely to benefit about $26 billion worth of Indian products that are currently subjected to 5% import duty by the UAE.
In Services, UAE has offered 111 sub-sectors to India as compared to 100 sub-sectors by India to UAE. Substantial gains in India’s areas of interest include Computer related services, Audio Visual services, Audio visual services, Education services, Health Services, Tourism & Travel related services, professional services (Nursing, engineering, accountancy etc.), & Other Business Services.
This agreement will provide a boost to Infrastructure Investment: UAE has committed to making significant investments in India’s infrastructure. For SMEs, CEPA will provide a platform for SMEs in both countries to expand internationally by granting them access to new customers, networks, and avenues of collaboration.
