India and the UAE have announced their plans to double the target of non-oil trade to $100 billion by 2030. The announcement was made during the first meeting of the Joint Committee of India-UAE Comprehensive Economic Partnership Agreement in New Delhi. The India-UAE CEPA was signed in 2022 and is expected to increase the total value of bilateral trade in goods to over $100 billion and services to over $15 billion within five years. The two countries are also exploring ways to increase trade further.
India has asked the UAE to increase the sourcing of refined petroleum products from India, with the goal of making the UAE India’s principal supplier of petroleum products. Third countries’ low-quality petroleum products could be refined by Indian refineries. The central banks of both countries also discussed the rupee-dirham trade mechanism after a meeting with Thani Al-Zeyoudi, the UAE minister of state for foreign trade.
The agreement is set to provide India preferential market access to the UAE on over 97 percent of its tariff lines, which account for 99 percent of Indian exports to the Gulf country in value terms. This deal includes labor-intensive sectors such as gems and jewelry, textiles, leather, agricultural and wood products, engineering products, pharmaceuticals, and automobiles.
The announcement is a significant step towards strengthening the economic ties between India and the UAE. The two countries have a long-standing relationship, with the UAE being India’s third-largest trading partner after China and the US. In 2020-21, the bilateral trade between India and the UAE stood at $40.71 billion, with India exporting goods worth $20.55 billion and importing goods worth $20.16 billion.
The increase in non-oil trade between India and the UAE is expected to boost economic growth in both countries. The UAE is a major hub for trade and investment in the Middle East, while India is one of the fastest-growing economies in the world. The two countries have complementary strengths, with India being a major exporter of goods and the UAE being a major importer of goods.
The India-UAE CEPA is expected to provide a major boost to the trade relationship between the two countries. The agreement will provide Indian businesses with preferential access to the UAE market, making it easier for them to export their goods and services to the country. The agreement will also help to reduce trade barriers between the two countries, making it easier for businesses to operate in both markets.
The establishment of a new subcommittee to handle issues related to services trade and share services trade data is another significant development. The subcommittee will help to promote the growth of services trade between India and the UAE, which is an important sector for both countries. The India-UAE CEPA council will also be set up to further facilitate the agreement’s implementation.
The India-UAE CEPA is a comprehensive agreement that covers a wide range of sectors. The agreement includes provisions for trade in goods, trade in services, investment, intellectual property, and government procurement. The agreement also includes provisions for dispute resolution and cooperation in areas such as customs and trade facilitation.
The agreement is expected to provide a major boost to the Indian economy, particularly in labor-intensive sectors such as gems and jewelry, textiles, leather, agricultural and wood products, engineering products, pharmaceuticals, and automobiles. These sectors are expected to benefit from increased access to the UAE market, which is a major importer of these goods.
In conclusion, the announcement of plans to double the target of non-oil trade to $100 billion by 2030 between India and the UAE is a significant step towards strengthening the economic ties between the two countries. The India-UAE CEPA is expected to provide a major boost to the trade relationship between the two countries and help to promote economic growth in both countries. The establishment of a new subcommittee to handle issues related to services trade and share services trade data is another significant development that will help to promote the growth of services trade between India and the UAE. The India-UAE CEPA is a comprehensive agreement that covers a wide range of sectors and is expected to provide a major boost to the Indian economy, particularly in labor-intensive sectors.