India-UAE CEPA creates significant positive impact on India-UAE trade.

• The India-UAE Comprehensive Economic Partnership Agreement (CEPA) is creating a significant positive impact on India-UAE trade.
• Indian exports to the UAE, excluding petroleum products grew from 5.17 billion dollar from June to August last year to 5.92 billion US dollar during June to August this year. It denotes an increase of 14 percent. The CEPA agreement has come into effect on 1st of May this year.
• Commerce and Industry Ministry said, Indian imports from the UAE during the same period also grew from 5.56 billion dollar to 5.61 billion dollar.
• It said Indian exports are likely to increase further in the coming months with increasing use of the CEPA by the exporters and with dedicated efforts from Department of Commerce.

About India-UAE Comprehensive Economic Partnership Agreement (CEPA):

• The historic India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was signed between the two nations on 18 February 2022.
• Gems & Jewellery sector contributes a substantial portion of India’s exports to the UAE and is a sector that is expected to benefit significantly from the tariff concessions obtained for Indian products under the India-UAE CEPA.
• Overall, India will benefit from preferential market access provided by the UAE on over 97 % of its tariff lines which account for 99% of Indian exports to the UAE in value terms particularly from labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, pharmaceuticals, medical devices, and Automobiles. As regards trade in services, Indian service providers will have enhanced access to around 111 sub-sectors from the 11 broad service sectors.
• CEPA is expected to increase the total value of bilateral trade in goods to over US$100 billion and trade in services to over US$ 15 billion within five years.