India-UAE Comprehensive Economic Partnership Agreement completes 3 years of signing

Newdelhi:18/2/25:The India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) is completing three years of its signing on 18^th February 2025. CEPA is a full and deep Agreement that was signed on 18^th February 2022, during a virtual summit between the Hon’ble Prime Minister of India, Shri Narendra Modi, and His Excellency the President of the UAE and Ruler of Abu Dhabi, His Highness Sheikh Mohamed bin Zayed Al Nahyan. It entered into force from 01^st May 2022.

Since the signing of CEPA, bilateral merchandise trade has nearly doubled from USD 43.3 billion in FY 2020-21 to USD 83.7 billion in 2023-24. During the current FY (April-December, 2024), it reached USD 71.8 billion. CEPA has been successful in realising its potential of diversification of the trade basket as non-oil trade touched USD 57.8 billion in FY 2023-24 accounting for more than half of the total trade. This is attuned to the target of taking bilateral non-oil trade to USD 100 billion level by 2030. In terms of utilization of CEPA preferential duties, since coming into force, nearly 2,40,000 Certificates of Origin have been issued against which total export of USD 19.87 billion have been made to the UAE.

In terms of India’s exports, non-oil exports reached USD 27.4 billion in FY 2023-24 recording an average growth of 25.6% since entering into force of CEPA. At the sectoral level, besides refined crude oil products and gems & jewelry products, electrical machinery and equipment, light & medium-high technology goods like boilers, generators and reactors and organic & in-organic chemicals have been major achievers. Besides, at the product level, smartphones have emerged as a major item of export with shipments valued USD 2.57 billion bound for the UAE during FY 2023-24.

Since the signing of the Agreement, both governments have strived to address challenges faced by each other’s exporters through regular high-level meetings and technical discussions between the officials. The Joint Committee, established as an institutional mechanism to take stock of the implementation of CEPA, has already met twice at the level of Joint/Additional Secretary -the last one being in October 2024. The Trade in Goods Committee has also met several times to address issues related to bilateral trade. In the spirit of cooperation and trust, both sides have taken concrete steps to operationalize various other Sub-Committees as well as to deliberate on issues related to trade in services, rules of origin, customs procedures, and trade facilitation. The inauguration of Bharat Mart initiative by the Hon’ble Prime Minister in Dubai will act as a one  Stop Shop for Indian manufacturers to offer their products to the global markets and will foster our exports.

The India-UAE CEPA has resulted in new era of economic partnership and diplomacy for both nations by empowering MSMEs, generating employment, and creating new business opportunities. India and UAE are committed to enhancing their economic partnership to foster robust trade and opportunities and reach new heights leveraging CEPA.