The Embassy of the UAE commemorated the second anniversary of the Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone in the longstanding relationship between the UAE and India. The agreement has made notable progress in promoting economic growth and cooperation, according to a statement released by the embassy.
Several distinguished dignitaries graced the event in Mumbai. Notably, under the India-UAE CEPA, exports of gems and jewelry from India to the UAE surged by 64 percent, while exports of Indian pharmaceuticals and drugs increased by 39 percent. Additionally, exports of Indian fruits and vegetables to the UAE experienced a notable rise of 35 percent.
As per the UAE embassy, the UAE-India CEPA came into effect on May 1, 2022, providing a host of trade advantages such as tariff elimination and reduction, fostering an open trade environment, and facilitating enhanced market access for service providers across diverse sectors. Additionally, it tackles technical barriers and facilitates access to government procurement opportunities.
While speaking on the occasion, Abdulnasser Alshaali, Ambassador of the UAE to India, said, “The UAE-India CEPA has emerged as a resounding success story, solidifying our nations’ long-standing economic ties and ushering in a new era of prosperity. Over the past two years, we have witnessed remarkable growth in bilateral trade, a testament to the immense potential that exists when our complementary strengths are harnessed effectively. The CEPA has not only opened new avenues for businesses to benefit from the bilateral partnership but has also fostered deeper integration of our economies, paving the way for increased investment flows and collaboration across diverse sectors.”
“The CEPA has spurred advancements in trade, with bilateral exchanges increasing from USD 72.9 billion (Apr 21-Mar 2022) to USD 84.5 billion (Apr 22-Mar 2023) registering a year-on-year increase of 16 per cent,” the press release stated.
Since the implementation of the CEPA, significant Indian export sectors have witnessed notable growth. Indian exports of gems and jewelry to the UAE have surged by nearly 64 percent within just two years. Moreover, crucial Indian export sectors like drugs and pharmaceuticals, as well as fruit and vegetable products, have also seen substantial increases, rising by almost 39 per cent and 35 per cent, respectively.
In addition to direct trade enhancements, the CEPA has unlocked various investment advantages and ignited a profound sense of confidence and ambition within both the UAE and Indian business sectors.
The press release mentions the important role of CEPA and said, “CEPA has been pivotal to the development of several economically transformative projects such as Bharat Mart in Dubai, as well as significant investments by major UAE entities into the Indian economy.”
The commitment of the Abu Dhabi Investment Fund to establish a USD 5 billion fund in partnership with Gujarat’s GIFT City, Mubadala’s acquisition of an eight percent stake in Manipal Health, and Lulu Group’s robust expansion strategies within India’s retail market vividly showcase the mutually advantageous outcomes of the CEPA. Additionally, the formation of the UAE-India CEPA Council earlier this year reaffirms the dedication of both nations to bolster their economic alliance.
Backed by the governments of the UAE and India, the CEPA Council is poised to strengthen investment and trade connections, solidifying the dynamic and resilient economic bond fostered by the CEPA’s implementation. Moving forward, collaborations in pivotal sectors including start-ups, women entrepreneurs, micro, small, and medium-sized enterprises (MSMEs), as well as the services sectors, will persist in propelling the growth narrative of UAE-India relations.
The success of the UAE-India CEPA underscores the strong alliance between the two nations and the transformative potential of economic integration. On commemorating the two-year milestone of the CEPA, the UAE reaffirms its dedication to further strengthening its partnership with India.