India-UAE Comprehensive Economic Partnership Agreement(CEPA) enters into force

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?

Click Here to read about it

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 articleIndia-UAE Comprehensive Economic Partnership Agreement(CEPA) enters into forcepublished in PIB on 1st May 2022.

Print Friendly and PDF