Today's Edition
A.SREENIVASA REDDY (ABU DHABI)
The bilateral trade between the UAE and India has more than doubled since the signing of the Comprehensive Economic Partnership Agreement (CEPA).
UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan and India’s Prime Minister Narendra Modi signed CEPA during a virtual summit on February 18, 2022. It entered into force on May 1. 2022.
India’s Ministry of Commerce and Industry issued a statement on the third anniversary of the UAE-India CEPA, highlighting the remarkable growth in trade between the two countries. According to the ministry's data, bilateral merchandise trade soared from $43.3 billion in FY 2020-21 to $83.7 billion in FY 2023-24. For the current fiscal year, as of January 2025, trade has already reached $80 billion. In India, the financial year (FY) runs from April 1 to March 31 of the following year.
One of the key successes of the CEPA has been the diversification of the trade basket, with non-oil trade growing significantly. In FY 2023-24, non-oil trade reached $57.8 billion, accounting for more than half of the total trade between the nations. This aligns with the target of raising non-oil trade to $100 billion by 2030.
Since the agreement came into effect on May 1, 2022, nearly 240,000 Certificates of Origin have been issued, facilitating exports worth $19.87 billion to the UAE. India’s exports to the UAE, particularly non-oil goods, have also seen a substantial rise, reaching $27.4 billion in FY 2023-24. This represents an average growth of 25.6% since the CEPA's implementation. Major export sectors include refined crude oil products, gems and jewelry, electrical machinery, high-tech goods like boilers and generators, and chemicals. Notably, smartphones have emerged as a significant export item, with $2.57 billion worth of shipments to the UAE in FY 2023-24.
The two governments have worked closely to address challenges faced by exporters, holding regular high-level meetings and technical discussions. A Joint Committee was set up to oversee the implementation of the CEPA, with two meetings held at the Joint/Additional Secretary level, the latest one in October 2024. Additionally, several sub-committees have been established to address issues related to trade in services, customs procedures, and trade facilitation.
The inauguration of the Bharat Mart initiative by Prime Minister Narendra Modi in Dubai is expected to further enhance India-UAE trade by providing a one-stop shop for Indian manufacturers to showcase their products to global markets. The CEPA has ushered in a new era of economic partnership and diplomacy, empowering MSMEs, generating employment, and creating new business opportunities for both countries.
