Top business houses of India and UAE last week came together to launch the UAE India Business Council - UAE Chapter. The objective is to boost trade and investment between the two countries. The event marks the first anniversary of India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed on February 18, 2022, covering different aspects such as healthcare, digital trade, government procurement, IPR, etc.

The trade pact aims to increase India-UAE bilateral trade to $100 billion and according to reports trade between the two countries witnessed 27.5 percent growth to $57.8 billion from $45.3 billion during the first eight months from April-November 2022. In value terms, the increase amounts to $12.5 billion. This growth – along with $75 billion increase in investment from UAE to India - is encouraging.

During the same period, India’s exports to UAE witnessed a strong growth of 19.32 percent to $20.8 billion from $17.45 billion. During the June 2022-January 2023 period, non-oil exports rose by 5 percent y-o-y to $15.2 billion, against 3 percent rise in imports to $16.8 billion and according to latest estimate, our exports to UAE may cross $31 billion during the current fiscal, driven by sectors like gems and jewellery, machinery and auto.

Commenting on the occasion, Prime Minister Narendra Modi viewed that India-UAE economic partnership has given a boost to Indian entrepreneurs. In a similar tone, the Commerce Minister pointed out that the pact has reduced tariff on more than 80 percent of product lines, enhanced market access to service exports and provided platform for small and medium enterprises to collaborate and scale. This sounds encouraging.

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