New Delhi: The India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), signed on February 18, 2022, has completed three years, marking a significant milestone with bilateral trade nearly doubling from $43.3 billion in FY 2020-21 to $83.7 billion in 2023-24, the Commerce and Industry Ministry announced on Tuesday.
During the nine-month period from April to December in the current financial year, bilateral trade has already reached $71.8 billion, highlighting the steady growth under the agreement. Among the key export items, smartphones have emerged as a major contributor, with shipments worth $2.57 billion sent to the UAE in FY 2023-24.
CEPA, a comprehensive trade agreement, was signed during a virtual summit between Prime Minister Narendra Modi and UAE President and Ruler of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan. It came into effect on May 1, 2022, and has played a pivotal role in diversifying trade beyond oil. Non-oil trade has grown to $57.8 billion in FY 2023-24, surpassing half of the total trade volume and aligning with the ambitious target of reaching $100 billion in bilateral non-oil trade by 2030.
Since the agreement's implementation, nearly 2,40,000 certificates of origin have been issued, facilitating total exports worth $19.87 billion to the UAE under preferential duties. India’s non-oil exports have reached $27.4 billion in FY 2023-24, reflecting an average annual growth of 25.6 percent. Key sectors driving this expansion include refined crude oil products, gems and jewellery, electrical machinery and equipment, high and medium-high technology goods such as boilers, generators, and reactors, as well as organic and inorganic chemicals.
Both governments have actively worked to resolve challenges faced by exporters through frequent high-level meetings and technical discussions. The Joint Committee, established to oversee CEPA’s implementation, has convened twice at the Joint and Additional Secretary level, while the Trade in Goods Committee has met multiple times to address trade-related issues. In line with their commitment to mutual cooperation, both nations have taken concrete steps to operationalize various sub-committees focusing on trade in services, rules of origin, customs procedures, and trade facilitation.
The inauguration of the Bharat Mart initiative by Prime Minister Modi in Dubai is set to further strengthen trade relations. Acting as a global marketplace, it will provide Indian manufacturers a one-stop platform to showcase their products and expand their reach in international markets, boosting export opportunities.
The India-UAE CEPA has ushered in a new era of economic collaboration, benefiting both nations by empowering MSMEs, generating employment, and creating new business opportunities. Strengthening their commitment to trade and economic growth, India and the UAE continue to leverage CEPA to explore new avenues of cooperation and expansion.
With IANS inputs