June 10: In a significant boost to bilateral economic ties, the India-UAE Comprehensive Economic Partnership Agreement (CEPA) has ushered in a new era of enhanced trade and strategic collaboration. The landmark agreement, which eliminates duties on over 97% of tariff lines, is expected to significantly benefit India’s labour-intensive industries by offering them zero-duty market access in the UAE. This strategic move is set to bolster exports from sectors like textiles, gems and jewellery, footwear, leather, engineering goods, and more, which form the backbone of India’s employment generation.
The CEPA, which came into force in 2022, is already showing promising results with trade volumes between the two nations witnessing a marked increase. By removing trade barriers and reducing costs, it enables smoother, faster movement of goods and services, ultimately strengthening supply chains. For India, this agreement not only opens a gateway to the Gulf but also serves as a springboard to broader markets in Africa and Europe via the UAE.
UAE, one of India’s top trading partners, has shown its commitment to deepening this relationship by supporting Indian MSMEs and entrepreneurs looking to expand in the Middle East. The agreement also fosters cooperation in areas like investment, fintech, renewable energy, and infrastructure, aligning with both nations’ economic growth strategies.
As India targets becoming a $5 trillion economy, CEPA plays a pivotal role in driving exports, boosting employment, and fostering resilient trade relations. This partnership reflects a shared vision of sustainable and inclusive growth, making it a model for global economic cooperation.