Date : 20 Feb 2022
India-UAE Comprehensive Economic Partnership AgreementTags :
Economic and Social Development-Sustainable Development, Poverty, Inclusion, Demographics, Social Sector Initiatives, etc.
Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests
Why in News?
- The India-UAE Comprehensive Economic Partnership Agreement, signed on 18th February 2022 is a landmark pact, that will open up new markets for Indian goods and services.
- India -UAE Comprehensive Economic Partnership Agreement (CEPA) will be extremely beneficial for MSMEs, Start-ups, farmers, traders and all sections of businesses.
- The labour intensive industries like Textiles, Gems and Jewellery, Leather goods and footwear and food processing industry would be prominent among those to benefit the most.
- The CEPA is a balanced, fair, comprehensive & equitable partnership agreement, which will give enhanced market access for India in both goods and services.
- It will create a minimum of 10 lakh jobs for our youth, open new markets for our startups, make our businesses more competitive & boost our economy.
- For the first time in a Trade agreement, the CEPA provides for automatic registration and marketing authorisation of Indian generic medicines in 90 days, once they are approved in any of the developed countries. This will give big market access to Indian medicines.
- Indian jewellery exporters will get duty-free access to the UAE, which currently imposes a 5% customs duty on such products. This will substantially raise its jewellery exports, since Indian designed jewelleries enjoy a great market reputation. The Gems and Jewellery sector expects to increase its exports to US$ 10 billion by 2023.
- The CEPA will not only improve competitiveness of Indian products, but also provide strategic advantages to India. “Since UAE functions as a trading hub, the Agreement will help provide us market entry points to Africa, Middle East and Europe”
- With the conclusion of the CEPA, India and UAE aim to increase bilateral goods trade over the next five years to $100 billion.
- UAE is India’s third largest bilateral trading partner.