Indian Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan on 18th February, 2022 held a virtual summit and witnessed the signing of the India-UAE Comprehensive Economic Partnership Agreement (India-UAE CEPA) by Indian Commerce and Industry Minister Piyush Goyal and UAE’s Economy Minister Abdulla bin Touq Al Marri.
The free trade agreement (FTA) is set to reduce tariffs for 80 percent of goods and offer zero duty access to 90 percent of India’s exports to the United Arab Emirates. Expected to come into effect in about 60 days, the agreement, is expected to boost annual bilateral trade to $100 bn within five years of its adoption, up from about $60 bn at present.
It is the first bilateral trade accord concluded by the UAE and India’s first bilateral trade agreement in the Middle East and North Africa (MENA) region, according to an official release.
Both sides are also strengthening their cooperation in new areas of renewable energy like green hydrogen, climate action, start-ups, skilling, financial technology and health technology. The UAE is India’s third largest trade partner and India ranks as the UAE’s top trading partner for non-oil exports, accounting for nearly 14 percent of the UAE’s total non-oil exports globally.
The historic trade deal is expected to lay the roadmap to a shared vision for the future envisaging stronger, more resilient economies that deliver sustainable welfare and wellness to the peoples of the two countries, the report added.
