India, UAE sign trade pact to boost bilateral ties; Goyal calls it 'golden era'

Commerce and Industry Minister Piyush Goyal stated on Friday that India and the United Arab Emirates (UAE) are entering a "golden era" of economic and trade cooperation with the signing of the landmark India-UAE CEPA ( Comprehensive Economic Partnership Agreement). 

Goyal held a bilateral meeting with the UAE delegation led by Minister of Economy Abdulla bin Touq Al Marri and Minister of State for Foreign Trade Thani bin Ahmed Al Zeyoudi. At the meeting, Goyal signed the India-UAE CEPA with the UAE delegation.

Tweeting about the same, Goyal wrote, "Both nations are entering a golden era of economic & trade cooperation with the signing of India-UAE CEPA." 

The agreement will also provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs The CEPA is likely to boost trade between India and the UAE from $60 billion to $100 billion in the next five years. 

Meanwhile, Prime Minister Narendra Modi and Crown Prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan held a virtual summit earlier today. Both leaders expressed deep satisfaction at the continuous growth in bilateral relations in all sectors, noted the Prime Minister Office (PMO) in an official statement. 

PM Modi and the Crown Prince also issued a joint vision Statement "Advancing the India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone".

The statement establishes a roadmap for a future-oriented partnership between India and UAE and identifies focus areas and outcomes. 

"The shared objective is to promote new trade, investment and innovation dynamic in diverse sectors, including economy, energy, climate action, emerging technologies, skills and education, food security, healthcare and defence and security," read the statement. 

The two leaders also released joint commemorative stamp on the occasion of 75th anniversary of India's independence and 50th year of UAE's foundation. 

Besides, two MOUs (Memorandum of Understanding) were also signed between Indian and UAE entities. One MOU between APEDA and DP World and Al Dahra on Food Security Corridor Initiative. The other MOU is between India's Gift City and Abu Dhabi Global Market on cooperation in financial projects and services. Two other MOUs - one on cooperation in climate action and the other on education have also been agreed between the two sides.

In September last year, India and UAE formally launched negotiations for the trade agreement.

The pact covers areas including goods, services, rules of origin, customs procedures, government procurement, intellectual property rights, and e-commerce.

Under such agreements, two trading partners reduce or eliminate customs duties on the maximum number of goods traded between them. Besides, they also liberalise norms to enhance trade in services and boost investments.

Bilateral trade between India and the UAE stood at $43.3 billion in 2020-21. Exports were worth $16.7 billion and imports aggregated at $26.7 billion in 2020-21. The two-way commerce stood at $59.11 billion in 2019-20.

The UAE is a gateway to Africa and other parts of the world.

India and UAE have collaborated closely during the COVID-19 pandemic in critical areas of healthcare and food security. Bilateral trade, investment and energy relations have remained robust. 

The two sides are also strengthening their cooperation in new areas of renewable energy, start-ups and fintech. India is participating with one of the largest pavilions in the Dubai Expo 2020. 

UAE is India's third-largest trade partner, and bilateral trade and investment ties are expected to see significant enhancements. It hosts a large Indian community which numbers close to 3.5 million.