India Uae Free Trade Agreements

India-UAE Free Trade Agreements: An Overview

The United Arab Emirates (UAE) and India are two of the fastest-growing economies in the world. With significant trade volumes between them, the two countries signed a free trade agreement (FTA) in 2008 to boost bilateral trade ties. Since then, both countries have been working towards expanding their economic cooperation, and in early 2021, the two countries signed a comprehensive economic partnership agreement (CEPA), which is a more comprehensive version of the FTA.

Let`s take a closer look at the India-UAE free trade agreements and how they benefit both countries.

What is an FTA?

A free trade agreement is a treaty between two or more countries that reduces or eliminates tariffs and other trade barriers on goods and services. The goal of an FTA is to promote trade between the participating countries and to stimulate economic growth. FTAs typically cover a wide range of issues, including trade in goods and services, investment, intellectual property, and government procurement.

India-UAE FTA

The India-UAE FTA was signed on August 25, 2008, and came into effect from August 1, 2011. Under the agreement, both countries agreed to eliminate or reduce tariffs on a range of products. Some of the sectors covered by the FTA include textiles and garments, chemicals, pharmaceuticals, engineering goods, and food items.

Benefits of the India-UAE FTA

The FTA has been beneficial to both India and the UAE. The FTA has led to an increase in trade between the two countries, with the UAE becoming India`s third-largest trading partner after China and the US. The volume of trade between India and the UAE reached USD 60 billion in 2020, with both exports and imports increasing significantly.

The FTA has also provided Indian companies with greater access to the UAE market, which is one of the most dynamic and affluent markets in the Middle East. The UAE is a leading destination for Indian exports, particularly in the areas of petrochemicals, precious metals, and textiles.

CEPA

In January 2021, the two countries signed a comprehensive economic partnership agreement (CEPA), which is an upgraded version of the FTA. The CEPA covers a wide range of issues, including trade in goods and services, investment, and economic cooperation.

Benefits of the CEPA

The CEPA is expected to provide a major boost to economic ties between India and the UAE. The agreement is expected to boost bilateral trade to USD 100 billion by 2030. The CEPA is expected to provide Indian companies with greater access to the UAE market and create new opportunities for UAE companies in India.

Conclusion

The India-UAE free trade agreements have been successful in increasing trade between the two countries and creating new business opportunities. The CEPA is expected to take this relationship to the next level by boosting bilateral trade and economic cooperation. The India-UAE economic partnership has the potential to become a model for economic cooperation between countries in the region, and beyond.