India-UAE sign the CEPA

90% of exports India to attract Zero Duty in UAE 

India looks forward to conclude a similar Economic partnership agreement with GCC

The Union Minister for Commerce & Industry, Consumer Affairs, Food & Public Distribution and Textiles, Piyush Goyal has termed the India UAE Comprehensive Economic Partnership Agreement (CEPA) is extremely beneficial for MSMEs, Startups, traders and all sections of businesses. 

The CEPA is a balanced, fair, comprehensive & equitable partnership agreement, which will give enhanced market access for India in both goods and services. “It will create jobs for our youth, open new markets for our Startups, make our businesses more competitive & boost our economy” said Goyal.  

“The finalization of the 880-page document in a record time of 88 days is a big achievement for both nations, it will boost economies of India and UAE and will usher in a new dawn for the people of the two countries” Goyal adds.

Choicest key highlights are, 1: Immediate market access at Zero duty, effective with signing. 2: To open up new markets for Indian goods and services. 3: Around 90% of products exported from India are under the ambit. 

4: To open doors especially to labour-intensive Indian products, including gem & jewellery, which are exported to UAE. 5: The pact will create a minimum of 10 lakh jobs for Indian citizens & 6: CEPA, aim to increase bilateral trade to $100 billion over the next five years.  

“Indian jewellery exporters will get duty-free access to the UAE, which currently imposes a 5% customs duty on such products. This will substantially raise its jewellery exports, since Indian designed jewelleries enjoy a great market reputation. The Gems and Jewellery sector expects to increase its exports to US$ 10 billion by 2023” said Piyush Goyal.  

The CEPA will not only improve competitiveness of Indian products, but also provide strategic advantages to India. “Since UAE functions as a trading hub, the Agreement will help provide us market entry points to Africa, Middle East and Europe” he added.  

Piyush Goyal also informed that the Government looks forward to conclude a similar economic partnership agreement with the Gulf Cooperation Council countries during this year itself. He said the Secretary-General of the GCC has expressed the desire to fast track the negotiations and added.  

"we are also confident in our negotiating ability, we have conducted negotiations in a rapid manner with UAE, and we are believe that a similar agreement on trade would be concluded with the GCC in this year itself," GCC is a union of six countries in the Gulf region, namely, Saudi Arabia, UAE, Qatar, Kuwait, Oman, and Bahrain with a combined nominal GDP of US$ 1.6 trillion.  

It may be recalled that the landmark India-UAE Comprehensive Partnership Agreement deal was signed during the virtual summit meeting between Prime Minister of India, Shri Narendra Modi and Crown Prince of Abu Dhabi, H.E. Sheikh Mohamed bin Zayed Al Nahyan.