List of Contents
What is the News?
The historic India-UAE Comprehensive Economic Partnership Agreement (CEPA) which was signed between the two nations has officially entered into force.
What is India-UAE CEPA?
How will this agreement benefit India?
Goods: India will benefit from preferential market access provided by the UAE on over 97% of its tariff lines which account for 99% of Indian exports to the UAE in value terms. Particularly from labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods among others.
Services: Indian service providers will have enhanced access to around 111 sub-sectors from the 11 broad service sectors.
Expected Impact: CEPA is expected to increase the total value of bilateral trade in goods to over US$100 billion and trade in services to over US$15 billion within five years.
Note: Exports are an important engine of growth in every economy. For instance, $670 bn of exports (goods and services) from India during the last fiscal year constituted 22-23% of the GDP.
Source: The post is based on the article “India-UAE Comprehensive Economic Partnership Agreement(CEPA) enters into force” published in PIB on 1st May 2022.
