India and the UAE on Friday inked a landmark Comprehensive Economic Partnership Agreement (CEPA) and unveiled a roadmap for expansion of overall ties at a virtual summit between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.
In his remarks, Modi delved into various facets of ties between India-and United Arab Emirates and said both the nations will stand “shoulder-to-shoulder” against terrorism while referring to the recent terrorist attacks in the Gulf country.
On CEPA, Modi noted that both sides could conclude the negotiations on such an important agreement in less than three months though it takes years for this type of pact to conclude.
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. While it cuts import duties on a wide range of products, the government expects it to especially boost the export of gems and jewellery, and apparels to the UAE and raise total trade up to $100 billion in the next 5-years.
UAE is India’s third-largest trade partner globally, after the United States and China. Bilateral trade between both nations stood at $43.3 billion as of 2020-21 and is spread across thousands of traded items. In 2019-20, the pre-pandemic year, trade between the two countries was estimated at $59 billion. The UAE is also home to 35 lakh Indian-origin persons.
The CEPA is expected to come into effect by the first week of May since the process will take about 60-days, Goyal said. During that time, a series of business interactions will be held across India, between businesses from both sides.
