India-UAE inks free trade pact
India has signed a trade pact with the United Arab Emirates (UAE) that will reduce import duties on the majority of Indian exports to the country.
The deal was signed in New Delhi by Commerce and Industry Minister Piyush Goyal and UAE’s Minister of Economy Abdulla bin Touq Al Marri.
The signed Comprehensive Economic Partnership Agreement (CEPA) is the first major trade deal signed by the Narendra Modi government with the UAE.
Both countries have said that CEPA will create new jobs, raise living standards, and provide wider social and economic opportunities in both nations.
The UAE is India’s 3rd-largest trade partner globally. The 880-page deal was negotiated in just 88 days. The deal also features a permanent safety mechanism to protect domestic businesses in both nations against sudden surges in trading volumes.
Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Mohamed Bin Zayed held a virtual summit where they issued a joint vision statement titled, “Advancing India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone”.
PM Modi tweeted, “Great pleasure to hold Virtual Summit with my friend HH Mohamed Bin Zayed Crown Prince of Abu Dhabi. India-UAE comprehensive strategic partnership has undergone huge transformation in the past 7 years. We issued a Joint Vision Statement that lays the future roadmap for our ties.”
He further added, “HH Mohamed Bin Zayed and I believe that the India-UAE CEPA signed today will be a game-changer in our economic ties. With enhanced market access, bilateral trade in goods should rise to $100 billion and services to $15 billion in the next 5 years.”
Great pleasure to hold Virtual Summit with my friend HH @MohamedBinZayed Crown Prince of Abu Dhabi. India-UAE comprehensive strategic partnership has undergone huge transformation in the past 7 years. We issued a Joint Vision Statement that lays the future roadmap for our ties.
— Narendra Modi (@narendramodi) February 18, 2022
The bilateral trade between India and the UAE stood at $43.3 billion in 2020-21. Exports were $16.7 billion, and imports, driven by oil, pushed the balance in favour of the UAE at $26.7 billion in 2020-21.
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