India-UAE Relations

India-UAE Relations
 

News: Minister of Economy (UAE) addressed on the occasion of 1-year completion of CEPA between India-UAE.
 

What is CEPA?

o It is a kind of free trade pact that covers negotiation on the trade in services and investment, and other areas of economic partnership. It may even consider negotiation in areas such as trade facilitation and customs cooperation, competition, and IPR.
o Such partnership agreements are more comprehensive than Free Trade Agreements.
 

Importance of CEPA for both nations:

o The Bilateral Trade has increased from US$ 72.9 billion (Apr 21-Mar 2022) to US$ 84.5 billion (Apr 22-Mar 2023) registering a year-on-year increase of 16%.
o During the CEPA Implementation period (from May 22 to Mar 23), bilateral trade increased from US$ 67.5 billion (May 21-Mar 2022) to US$ 76.9 billion (May 22-Mar 2023) – an annual increase of 14%.
o It has generated greater trade volumes and improved mutual access to markets. It has generated a wide range of economic, industrial and investment opportunities. For example, The CEPA provides for preferential market access for over 80% of products traded between India and the UAE.
o The CEPA provides for a liberal and nondiscriminatory regime for cross-border investment between India and the UAE. It also includes provisions on, dispute settlement and cooperation on investment facilitation.
o The volume of non–oil trade reached the $50 billion mark in 2022, with growth of about 10%.
o The UAE-India CEPA is unleashing the spirit of entrepreneurship, inspiring innovators and investors. It is encouraging SMEs, startups to make inroads into new markets.
o The UAE-India CEPA is also a strategic catalyst in addressing vital developmental challenges. It can tackle issues such as energy and food security, agriculture, and sustainability.
 

Few Facts about India-UAE relations:

o In 2022-23, the UAE with $76.16 billion, was the third largest trading partner of India.
o UAE is the 7th largest investor in India with cumulative FDI inflows of US$ 15,179 million from April 2000 – September 2022.
o Major Indian exports to UAE are petroleum products, gems and jewellery, machinery and instruments, chemicals, iron and steel, textiles and garments, cereals, meat and meat products, etc.
o Major Indian imports from UAE are crude oil, gold, pearls and precious stones, metal ores and metal scrap, chemicals, electrical machinery, etc.