Mumbai: Commerce and Industry Minister Piyush Goyal has said that the India-UAE Comprehensive Economic Partnership Agreement (CEPA) is extremely beneficial for MSMEs, startups, farmers, traders and all sections of businesses.
Addressing a press conference here, the Minister said CEPA is “balanced, fair, comprehensive and equitable partnership agreement”, which will give enhanced market access for India in both goods and services. “It will create jobs for our youth, open new markets for our startups, make our businesses more competitive and boost our economy,” he said.
The minister informed that sector-wise consultations have shown that the pact will create a minimum of 10 lakh jobs for Indian citizens.
He said CEPA is a landmark partnership between two countries whose political leadership and businesses share “very strong bonds going back many years in history”.
“The finalization of the 880-page document in a record time of 88 days is a big achievement for both nations, it will boost economies of India and UAE and will usher in a new dawn for the people of the two countries.”
The Commerce Minister informed that the partnership agreement will open doors, especially to labour-intensive Indian products which are exported to UAE – such as textiles, gem and jewellery, medicines, agricultural products, footwear, leather, sports goods, engineering goods, auto components and plastics.
He told the media that under the pact, UAE has offered immediate market access at zero duty from day one of the entry into force of the agreement, to products accounting for 90 per cent of India’s exports to UAE in value terms.
“Around 90 per cent of products exported from India to UAE will attract zero duty with the implementation of the agreement. Eighty per cent lines of trade will attract zero duty, remaining 20 per cent does not affect our exports much, so this is a win-win agreement,” he said.
The minister said CEPA will not only improve the 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” he added.
The minister noted that with the conclusion of the CEPA, India and UAE aim to increase bilateral goods trade over the next five years to $100 billion. “However, I believe that the potential for trade between the two nations is even bigger, we will surpass the target we have set for ourselves,” he said.
“CEPA brings the two nations closer, will open many new opportunities for Indians to work in UAE, including in fintech, edtech, green tech, automation and Artificial Intelligence. Technology, digital trade and sustainability have a big focus in the partnership.
“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 developed countries. This will give big market access to Indian medicines not only in UAE, but also in Middle East and Africa,” Goyal said.
Noting that CEPA provides for a permanent bilateral safeguard mechanism to deal with a sudden surge in imports of any product, he said it also has stringent ‘rules of origin’ reflecting requirements for substantial processing of up to 40 per cent value addition.
An MoU among APEDA, DP World & Al Dahra on the UAE side regarding ‘Food Security Corridor Initiative’ has been prepared, under which India will be able to play an important role in the food security of UAE, he added.
India-UAE Comprehensive Partnership Agreement deal was signed during the virtual summit meeting between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan.
