Bilateral Trade Between India and UAE Soars to $83.7 Billion Following CEPA
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Synopsis
The India-UAE comprehensive economic partnership agreement (CEPA), signed on February 18, 2022, has propelled bilateral trade to $83.7 billion in 2023-24, nearly doubling from $43.3 billion in FY 2020-21, according to the Commerce and Industry Ministry. Key exports include smartphones and various non-oil products.
Key Takeaways
- CEPA has led to nearly $83.7 billion in bilateral trade.
- Non-oil trade reached $57.8 billion in FY 2023-24.
- India's exports to the UAE have significantly increased.
- The Bharat Mart initiative aims to boost Indian exports.
- Ongoing high-level discussions are addressing trade challenges.
New Delhi, Feb 18 (NationPress) The India-United Arab Emirates (UAE) comprehensive economic partnership agreement (CEPA), which was signed on February 18, 2022, has now celebrated three successful years. During this period, bilateral trade has surged nearly to $83.7 billion in 2023-24, up from $43.3 billion in FY 2020-21, as reported by the Commerce and Industry Ministry.
For the nine-month period from April to December of the current financial year, trade has already reached $71.8 billion, according to the statement.
Smartphones have become a key export product, with shipments valued at $2.57 billion directed to the UAE during FY 2023-24.
CEPA is a comprehensive and profound agreement that was established during a virtual summit between Prime Minister Narendra Modi and the President of the UAE and Ruler of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan. It officially went into effect on May 1, 2022.
This agreement has effectively diversified the trade landscape, with non-oil trade reaching $57.8 billion in FY 2023-24, which represents over half of the total trade volume. This aligns with the ambitious goal of enhancing bilateral non-oil trade to $100 billion by 2030.
Since the implementation of CEPA, nearly 240,000 certificates of origin have been issued, leading to a total export value of $19.87 billion to the UAE.
India's non-oil exports have reached $27.4 billion in FY 2023-24, marking an impressive average growth of 25.6% since the agreement came into effect, according to official statistics.
Key sectors contributing to this growth include refined crude oil products, gems and jewellery, electrical machinery and equipment, as well as light and medium-high technology goods such as boilers, generators, and reactors, along with organic and inorganic chemicals.
Since the signing of CEPA, both nations have worked diligently to address challenges faced by their respective exporters through regular high-level meetings and technical discussions.
The Joint Committee, which was established as a mechanism to monitor CEPA's implementation, has convened twice at the level of Joint and Additional Secretary. Additionally, the Trade in Goods Committee has held several meetings to tackle issues related to bilateral trade. In a spirit of cooperation and trust, both nations have taken concrete steps to operationalize various sub-committees and discuss matters related to trade in services, rules of origin, customs procedures, and trade facilitation.
The launch of the Bharat Mart initiative by PM Modi in Dubai aims to serve as a one-stop shop for Indian manufacturers to showcase their products to global markets, bolstering exports.
The India-UAE CEPA has ushered in a new era of economic partnership and diplomacy between the two countries, empowering MSMEs, creating jobs, and generating new business opportunities.
“India and the UAE are dedicated to enhancing their economic partnership to promote robust trade opportunities and reach new heights via CEPA,” the statement concluded.
