India-UAE negotiations for Comprehensive Economic Partnership Agreement

India and United Arab Emirates (UAE) have launched the negotiations for a mutually beneficial comprehensive economic partnership agreement on September 22, 2021.

Highlights

• First round of CEPA negotiations will be held on September 23 and 24.
• Both the countries aim to conclude the negotiations by December 2021.
• Once the negotiations are concluded, they will sign a formal agreement in March 2022 after completing the internal legal procedures and ratification.

Significance of CEPA

India and the UAE are each other’s largest trading partners. CEPA will help in enhancing the bilateral trade and investment flows. This agreement will also assist in post-Covid economic recovery and future economic growth of both the countries. It will create new job opportunities, boost living standards, and improve general welfare of the people of both the countries.

India-UAE Economic Relations

The UAE is India’s third-largest trading partner, having a bilateral trade of $59 billion in Financial Year 2020. UAE is also the second-largest export destination of India, after the US. Its exports are valued at around $29 billion in FY20. India is also the second-largest trading partner of UAE, as of 2019 with bilateral non-oil trade is valued at $41 billion. UAE is also the eighth-largest investor in India, that invested $11 billion in between April 2000 to March 2021. Investment by Indian companies in the UAE is valued at around $85 billion.

India’s export to UAE

Major exports to the UAE comprise of stones, petroleum products, precious metals, gems and jewellery, minerals, food items like sugar, cereals, fruits & vegetables, meat, tea, meat & seafood, textiles, chemicals and engineering & machinery products. India imports crude petroleum and petroleum products, precious metals, minerals, stones, gems & jewellery, chemicals & wood and wood products from UAE.

Month: Current Affairs - September, 2021