India and the UAE last week signed a comprehensive economic partnership agreement (CEPA) that will allow duty-free export of food products, textiles, gems and jewellery and pharma, while giving easier access to the Emirates for Indian professionals in high-skill sectors. The deal with the UAE signals the government returning to signing free trade agreements (FTAs) as it seeks to push exports and movement of Indian professionals.
Given the growing bilateral ties, the agreement also signalled the strategic intent and also tap a possible gateway for exports to other countries in the region. While the last deal was signed with Mauritius a few months ago, no major trade pact has been signed for close to a decade. Next up are free trade treaties with Australia and the UK, with negotiations under way with the European Union, Israel and Canada.
“It provides a wide array of gains for both economies and provides opportunities for businesses in both economies…This is an agreement which brings the economic dimension to a deep and enduring strategic partnership between the UAE and India,” commerce & industry minister Piyush Goyal told reporters as he pitched it as a win-win deal.
The government expects the CEPA to push bilateral trade from $60 billion to $100 billion in five years apart from expediting work on a dedicated investment zone for UAE companies and joint ventures with a focus on setting up a food corridor and establishment of a dedicated India Mart in Jebel Ali Free Zone.
Besides, it is expected to create opportunities for Indian investors in establishing specialised industrial advanced technology zones in Abu Dhabi, with specific focus in areas of logistics and services, pharmaceuticals, medical devices, agriculture, agritech, steel and aluminium.
