UAE-India CEPA: 2-Year Anniversary, 16% Trade Surge; Jewellery, Fruits, Pharma Boosts

UAE-India CEPA Celebrates 2-Year Anniversary With 16% Bilateral Trade Surge

Celebrating the second anniversary of the UAE-India Comprehensive Economic Partnership Agreement (CEPA) signifies not only a milestone in bilateral relations but also a testament to the growing economic ties between these two nations. Over the course of two years, the bilateral trade between the UAE and India has surged by an impressive 16 percent, showcasing the tangible benefits of this strategic partnership. This surge in trade has been particularly pronounced in key sectors such as jewellery, pharmaceuticals, fruits, and vegetables, underscoring the diverse range of industries that have thrived under the CEPA.

The implementation of the CEPA on May 1, 2022, has brought about a paradigm shift in the trade dynamics between the UAE and India. By eliminating and reducing tariffs, fostering an open trade environment, and enhancing market access for service providers across various sectors, the agreement has laid a robust foundation for sustained economic growth and cooperation. Furthermore, by addressing technical barriers and facilitating access to government procurement opportunities, the CEPA has unlocked new avenues for collaboration and investment between the two nations.

The embassy’s assertion of the CEPA’s pivotal role in driving trade advancements is underscored by the staggering increase in bilateral exchanges, which surged from USD 72.9 billion (April 2021 to March 2022) to USD 84.5 billion (April 2022 to March 2023), marking a notable year-on-year increase of 16 percent. This exponential growth is a testament to the CEPA’s efficacy in fostering mutually beneficial trade relations and enhancing economic prosperity for both countries.

Moreover, the CEPA has catalyzed significant growth in major Indian export sectors, with Indian gems and jewellery exports to the UAE witnessing a remarkable expansion of nearly 64 percent within just two years. Similarly, critical export sectors such as drugs and pharmaceuticals, as well as fruit and vegetable products, have experienced substantial growth, increasing by almost 39 percent and 35 percent, respectively. These statistics underscore the transformative impact of the CEPA in bolstering India’s export prowess and expanding market access in the UAE.

In parallel, recent high-level engagements between the UAE and India have further cemented the Comprehensive Strategic Partnership between the two nations. External Affairs Minister S Jaishankar’s discussions with UAE Minister Reem Al Hashimy underscore the shared commitment to deepening bilateral cooperation across various sectors. Additionally, Hashimy’s meetings with Indian officials, including Foreign Secretary Vinay Kwatra, reflect the concerted efforts to strengthen ties and explore new avenues for collaboration.

As the UAE prepares to mark the second anniversary of the CEPA on May 1, the occasion serves as a timely reminder of the enduring partnership between these two dynamic nations. Notably, the CEPA has not only contributed to the surge in bilateral trade but has also fostered greater economic integration, resilience, and prosperity for both the UAE and India. Looking ahead, the continued implementation and enhancement of the CEPA will undoubtedly play a pivotal role in shaping the future trajectory of the UAE-India bilateral relationship.