Bolly Inside - 17 September 2022
India-UAE trade agreement becomes effective
By Patrick Huston
A free trade agreement between India and the United Arab Emirates came into force on Sunday, allowing duty-free access to UAE markets for domestic exporters in various sectors, including textiles, agriculture, dried fruits, gems and jewellery. As a symbolic gesture to implement the agreement, Commerce Minister BVR Subrahmanyam presented certificates of origin to his three exporters in the gem and jewelery industry. These shipments to Dubai are duty-free under an agreement formally called the Comprehensive Economic Partnership Agreement (CEPA).
This trade deal will help increase two-way trade from his current $60 billion to his $100 billion in five years. “$100 billion is just the beginning we will have $200 billion and then $500 billion in the next few years,” the minister said, adding that “99% of our exports will be duty-free in the UAE.” The gems and jewelery sector accounts for a sizeable portion of India’s exports to the UAE and is expected to benefit significantly from preferential tariffs granted on Indian products under the agreement.
The Central Bureau of Indirect Taxes and Customs (CBIC) and the Directorate General of Foreign Trade (DGFT) have issued notifications related to the implementation of the agreement from 1 May. “Today, the CEPA between India and the UAE enters into force. Today we are making our first shipment from India to the UAE, which will benefit from this agreement,” Subrahmanyam said here. The United Arab Emirates is India’s second or third largest trading partner, and the country is the gateway to the Middle East, North Africa, Central Asia and sub-Saharan Africa, he noted.
Overall, India will benefit from the UAE’s preferential market access for more than 97% of its customs commodities (or commodities). This accounts for her 99% of the value of India’s exports to the UAE. Sporting goods, plastics, furniture and technical products. Emphasizing the need for Indian products to be competitive in the international market, he said, there is a need to build and expand domestic production capacity.
He also shared that India has been very quick in negotiating trade deals with complementary economies such as the UK, Canada and the EU. Exports of goods and services account for about 22-23% of India’s GDP, Subrahmanyam said. “Our vision is to make India such that his 25-30% of her GDP comes from exports,” he added. The Department of Commerce has also strengthened itself to look to the future and face the challenges of tomorrow, with a focus on trade promotion. “We’re rearranging the departments. They’ll change in the coming months we’re going to build a huge trade facilitation department.