India, UAE CEPA, Win-Win Deal

India PM Modi, UAE Crown Prince Nahayan

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”.

Rama Krishna Sangem

Ramakrishna chief editor of excel India online magazine and website

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Rama Krishna Sangem

Excel India national news magazine is a media startup founded and piloted by Rama Krishna Sangem, a Hyderabad based senior journalist with over three decade experience in the field of media, mostly in print journalism. His rich experience in reporting for both Telugu and English newspapers and heading a TV news channel and some online outfits will be of immense use to this venture. Excel India English news magazine seeks to fill the gap of analytical understanding to our readers who today are confronted with myriad media platforms. Our online version not only offers regular updates and commentary on happenings around us, but also gives larger stories not limited by space constraints of a print magazine. Excel India is ably run by a team of senior journalists committed to values and quality standards in the profession. We urge you all to support and guide us in this endeavour. Reach us at