Industry welcomes India-UAE trade pact

New Delhi: India’s industry bodies have welcomed India-United Arab Emirates (UAE) trade pact, citing it as an enabler to increase exports.

India and the UAE have entered into a Comprehensive Economic Partnership Agreement (CEPA).

The agreement to boost bilateral trade is expected to be implemented within 60 days and entails enhanced market access and reduced tariff.

It is expected that the CEPA will lead to an increase in bilateral trade from the current $60 to $100 billion in the next five years.

The India-UAE CEPA is the first bilateral trade accord concluded by the UAE, and is also India’s first bilateral trade agreement in the Middle East and North Africa (MENA) region.

At present, UAE is India’s second largest export destination next only to the US.

In the first nine months of the current financial year, India’s exports to the UAE have already crossed $20 billion.

According to Engineering Export Promotion Council India Chairman, Mahesh Desai, “The India-UAE FTA will provide a major push to the engineering goods exports’ as a result of lowering of import duty on most items.”

The UAE has been India’s third largest export destination for engineering items despite the constraint of average 5 per cent import duty.

The textiles and apparel industry in India is the second largest employer in the country providing direct employment to 45 million people and 60 million people respectively in the allied industries.

Image courtesy of thesatimes

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