Rama Krishna Sangem
India and UAE signing a historic Comprehensive Economic Partnership Agreement (CEPA) is a win-win deal for both the countries. If UAE (United Arab Emirates) hopes to create around 1, 40,000 jobs, India is expecting more than 10 lakh jobs in the coming two to three years. This bilateral was signed by Indian Commerce Minister Piyush Goel and UAE’s counterpart Thani Bin Ahmed Zeyoudi.
The signing of the deal was overseen by a virtual meeting between Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheik Mohammed bin Zayed Ali Nahayan. A salient feature of this deal is that 90 per cent of Indian exports to UAE will be duty free. These are labour intensive goods like gems, jewellery, textiles, pharmaceuticals, leather and agricultural products.
India imports mostly oil and chemicals from UAE. As of now, Indian imports are worth of 32.7 billion US dollars while exports are 20.1 billion per annum. After this CEPA, India hopes to improve its exports to UAE by 50-60 billion dollars in the next five years. Similarly, UAE too will have assured oil market in India, besides other commodities. India Mart will come up at Jabel Ali Free Zone.
UAE is a gateway for India exports to other Arab and African countries too, as UAE has agreements with those countries. UAE is India’s third largest trading partner after China and the US. A few months ago India signed a similar deal with Mauritius, but that is a smaller country in terms of trading.
In the coming months, India will sign free trade agreements with Australia and then the UK. Talks are underway for similar deals with the EU, Israel and Canada. India two years ago refused to sign a regional comprehensive economic partnership agreement fearing Chinese dominance. But, now India is busy signing bilateral agreements with different countries. This may be a good strategy.\
UAE Re-Export Market
We should not forget that UAE is world’s third largest re-export market (it exports after adding some value the imports). So, India can increase its exports phenomenally as they are duty free in UAE. UAE foreign trade minister Zeyoudi said: “This deal will enhance private investments. Soon we will announce projects worth 75 billion dollars”.
