Free trade agreement gives new horizons for India-UAE partnership

Dubai: Ties between India and the United Arab Emirates got a major boost with the Comprehensive Economic Partnership Agreement (CEPA), signed recently between the two countries which is expected to increase bilateral non-oil merchandise trade to USD 100 billion in the next five years.

The CEPA, virtually signed between Crown Prince Mohammed bin Zayed and Prime Minister Modi on February 18, is expected to boost the current USD 60 billion to USD 100 dollars billion annually within five years of the implementation of the India-UAE free trade agreement.

This agreement will come into effect on May 1 only after ratification by both countries, Arabian Post reported.

During an online interview with Indian media, UAE Minister of Foreign Trade, Thani Bin Ahmed bin Zeyoudi said that this trade will open the doors to the full range of financial, technological and human capital exchange while Minister of State for Commerce, Anupriya Patel told the Indian parliament that this bilateral trade is expected to increase from the current USD 60 billion to USD 100 billion annually within five years of the implementation of the India-UAE free trade agreement, according to Arabian Post.

India is a fast developing market and the UAE, with the ability to invest in foreign shores setting a good example of strong economic ties. The growing India-UAE economic and commercial relationship will contribute to the stability and also strengthen the relationship between the two countries.

With CEPA trade, UAE became India’s third-largest trading partner for 2018-19. UAE is also the second-largest export destination after the US with an amount of more than USD 30 billion for the same year. While for UAE, India was the second-largest trading partner in 2018. UAE is also the 10th biggest foreign investor in India as it invested around USD 13-14 billion, reported Arabian Post.

Not only in the economic sector but India and UAE are also expanding their relationship in the defence sector as well. There have been regular high-level functional level exchanges between the two countries. On March 26, the Indian Army held talks with the UAE Army on issues related to training, the conduct of bilateral/ multilateral exercises and enhancing defence cooperation.