Significant positive impact on India-UAE trade from India-UAE CEPA

Tags: International Relations International News

The India-UAE Comprehensive Economic Partnership Agreement (CEPA) that came into force on 1 May 2022 is creating a significant positive impact on India-UAE trade.

Important facts

• Indian exports to the UAE, excluding petroleum products, grew from US$ 5.17 billion during June-August 2021 to US$ 5.92 billion during June-August 2022. 

• It denotes an increase of 14% of Indian exports.

• India’s global non-petroleum exports during the same period (Jun-Aug 2022) grew by 3% on an annual basis.

• This implies that the growth rate of India's non-petroleum exports to UAE is about 5 times that of India's non-petroleum exports to the world.

• According to the Commerce and Industry Ministry Indian imports from the UAE during the same period also grew from 5.56 billion dollar to 5.61 billion dollar.

India-UAE Comprehensive Economic Partnership Agreement (CEPA)

• It was signed on 18 February 2022, during the India-UAE Virtual Summit. 

• It came into force on 1 May 2022. 

• It provides for an institutional mechanism to encourage and improve trade between the two countries.

• CEPA is a type of free trade agreement that covers trade in services and investment and negotiations on other areas of economic partnership.