UAE-India CEPA Spurs Trade, Startup, and SME Growth: Al Marri

UAE-India CEPA Spurs Trade Growth and Startup Collaborations

The landmark Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India has significantly boosted bilateral trade and strengthened collaboration to promote startups. Since its inception, CEPA has driven a 16.41 percent increase in trade, said UAE Minister of Economy Abdulla Bin Touq Al Marri.

Trade Growth and Future Projections

Leading a UAE delegation to India last week, Al Marri emphasized the robust growth in two-way trade, putting both countries on track to surpass the goal of $100 billion in non-oil trade by 2030. The agreement, which came into effect on May 1, 2022, has unlocked numerous benefits for private sectors. Trade between the two nations has surged from $72.87 billion in 2021-2022 to $84.84 billion in 2022-2023, marking a 16.41 percent increase.

Sector-Specific Growth

Major Indian export sectors have seen significant growth following CEPA’s implementation. Indian exports of gems and jewelry, pharmaceuticals, and fruits and vegetables to the UAE have notably increased. Additionally, Indian Foreign Direct Investment (FDI) in the UAE is on the rise, with 11,000 new Indian companies registered in 2022, bringing the total number of Indian companies operating in the UAE to over 83,000.

Strengthening Cooperation with Tamil Nadu

During the UAE delegation’s visit, discussions were held with top leaders of Tamil Nadu on enhancing cooperation in sectors such as the new economy, tourism, entrepreneurship, SMEs, transport, and fintech. Al Marri held bilateral meetings with M K Stalin, Chief Minister of Tamil Nadu, and Dr. T R B Rajaa, Minister for Industry, Investment Promotion, and Commerce of Tamil Nadu, in the presence of Alia Bint Abdulla Al Mazrouei, the UAE Minister of State for Entrepreneurship.

Promoting Startups and SMEs

Cooperation in startups and SMEs is a key aspect of CEPA. The agreement has facilitated the exchange of best practices between accelerators, incubators, and other ecosystem stakeholders. The launch of the ‘India-UAE Startup Bridge’ has brought this vision to reality. This platform provides information about the Indian and UAE startup ecosystems, facilitating capacity building for incubators, incubation opportunities for startups, cooperation between investment firms, and fundraising support to help startups grow into unicorns.

Strategic Economic Partnership

Al Marri highlighted the strategic economic, political, and cultural relations between the UAE and India, which continue to grow and reach new heights. “India is a strategic economic partner to the UAE, and we look forward to continuing our collaboration in sectors of mutual interest. Our joint efforts will enhance the distinct economic partnership between the two countries, supporting the growth and sustainability of both economies.”

UAE’s FDI in India

The UAE’s FDI in Indian markets spans several vital economic sectors, including renewable energy, software, IT services, and automotive manufacturing. The non-oil trade exchange between the two countries continues to grow, with the total value exceeding $53.5 billion in 2023, a 3.9 percent increase compared to 2022.

UAE’s Tourism Sector Development

Reviewing the UAE’s efforts to develop the tourism sector, particularly in line with the National Tourism Strategy 2031, Al Marri stated that the strategy aims to elevate the UAE’s status as a leading global tourism destination. The strategy seeks to increase the sector’s contribution to the national GDP to Dh450 billion and attract Dh100 billion in new investments over the next decade.

The UAE-India CEPA has significantly impacted trade growth and startup collaboration, benefiting both nations. By maintaining high standards, leveraging technological advancements, and promoting sustainability, the UAE and India can continue to expand their global economic footprint and achieve sustainable growth in the coming years.