India-UAE CEPA will be implemented from May 1, exports of $ 40 billion possible in 2022-23
India-UAE CEPA will come into force from May 1
According to the government, from the very first day of the agreement, about 90 percent of the products related to Indian interest will open the way for export to the UAE. The FTA is expected to increase bilateral trade between the two countries to $100 billion from the current $60 billion in the next five years.
Comprehensive Economic Partnership Agreement between India and UAE (CEPA) is going to come into force from May 1. On Sunday, Commerce Ministry officials will send the first consignment to the UAE under this agreement. According to the government, the CEPA will benefit Indian products worth $26 billion, which are currently under the 5 per cent import duty. UAE is India’s third largest trading partner after the US and China.Trade Partner) is. At the same time, Federation of Indian Export Organization has estimated that the help of CEPA will be available in this financial year. export ,Export) could reach $ 40 billion, which was close to $ 26 billion a year ago.
Bilateral trade can be $100 billion in 5 years
After the announcement of CEPA, Commerce and Industry Minister Piyush Goyal had said that the free trade agreement between India and the United Arab Emirates (UAE) will help take bilateral trade to $100 billion in the next five years and create millions of jobs. will help. According to the government, from the very first day of the agreement, about 90 percent of the products related to Indian interest will open the way for export to the UAE. Companies in India and UAE will get significant benefits from the free trade agreement. This includes better market access and lower fee rates. With this FTA, the bilateral trade of both the countries is expected to increase from the current $ 60 billion to $100 billion in the next five years. The special thing is that India and UAE started formal talks for a trade agreement in September last year. The total 881-page settlement was completed in a record 88 days. After the agreement, Piyush Goyal had informed that this is a new remarkable agreement, which has benefited the pharmaceutical industry for the first time. This will open doors for our products in UAE
what will be the benefit
The agreement will create one million jobs in labor intensive sectors like textiles, handlooms, gems and jewellery, leather and footwear. The UAE has agreed that medical products made in India approved by the European Union, UK, Canada or Australia will have market access and regulatory approval within 90 days from the date of submission of the application. While the UAE has agreed to do away with the duty on Indian jewellery, India will waive the duty on imports of up to 200 tonnes of gold. At the same time, the agreement will provide easy market access to various sectors related to services. At the same time, both sides are considering an arrangement in India, which will accelerate investment in the infrastructure and logistics chain. At the same time, this agreement will increase the national GDP of the United Arab Emirates by 1.7 percent, or $ 8.9, and increase exports by 1.5 percent. The agreement covers areas such as goods, services, rules of origin, customs procedures, government procurement, intellectual property rights and e-commerce. In these types of agreements, both partner countries significantly reduce or eliminate customs duties on most traded goods. In addition, they liberalize regulations to increase business and accelerate investment in the services sector.