Can UAE Be The Next Big Hotspot For Indian Businesses?

In a significant development, the 1st Meeting of the Joint Committee (JC) of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) concluded successfully. 

This milestone underscores the commitment of both nations to strengthen their economic partnership and further enhance their already close and robust relationship. The meeting focused on reviewing bilateral trade under the CEPA, establishing committees, sub-committees, and a technical council, exchanging preferential trade data, addressing implementation matters, and promoting collaboration through a UAE-India CEPA Council (UICC).

What were the key outcomes of the 1st Meeting of the Joint Committee?

During the 1st Meeting of the JC, India, and UAE engaged in fruitful discussions on various aspects of the CEPA. The review of bilateral trade highlighted the encouraging growth rate of approximately 16.5%, demonstrating the positive impact of the agreement. 

With bilateral trade reaching an all-time high of around USD 84.84 billion in FY 2022-2023, both nations expressed their commitment to further boosting trade relations. To facilitate effective monitoring, both sides agreed to exchange preferential trade data on a quarterly basis.

Enhancing Implementation and Addressing Potential Challenges

Recognizing the importance of smooth implementation, the JC agreed on operationalising the established committees, sub-committees, and technical councils under the CEPA. This collaborative effort will ensure that any challenges hindering the agreement's effectiveness or impeding business utilisation are addressed promptly. 

In addition, a new sub-committee on Trade in Services will be created to strengthen cooperation in this vital sector. Moreover, the establishment of the UAE-India CEPA Council (UICC) as a B2B collaboration mechanism, with a special focus on MSMEs and start-ups, will promote deeper economic linkages and optimize the benefits of the CEPA.

Why is the WTO MC13 important for India and UAE?

Both nations exchanged views on World Trade Organisation (WTO) matters, underscoring their shared interest in multilateral trade cooperation. Notably, Abu Dhabi, United Arab Emirates, is set to host the 13th Ministerial Conference of the WTO (MC13) during the week of 26 February 2024. This upcoming conference presents an excellent opportunity for India and UAE to further align their positions and contribute to the global trade agenda.

Strengthening Bilateral Ties through Delegation Visits

In June 2023, a high-level delegation from the UAE, led by H.E. Dr. Thani bin Ahmed Al Zeyoudi, Minister of State for Foreign Trade, visited India. The visit coincided with the 1st Anniversary of the Implementation of the India-UAE Comprehensive Economic Partnership Agreement (CEPA). The delegation engaged in productive discussions, culminating in the signing of the agreed minutes of the 1st Meeting of the Joint Committee.

How has the CEPA transformed the India-UAE partnership?

During a Joint Press Conference, Piyush Goyal, Union Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, emphasized that the CEPA has revolutionized the India-UAE partnership by injecting renewed impetus and momentum into their already strong ties. Highlighting the early successes of the agreement, Goyal noted that bilateral trade in non-petroleum products has already reached USD 48 billion and expressed confidence in achieving the target of USD 100 billion by 2030.

With UAE committed to investing close to USD 100 billion by 2030, startups can leverage the CEPA agreement to get investments and scale their business to UAE. 

Nurturing Business Relations and Exploring Opportunities

Both ministers participated in a B2B event organized by the Department of Commerce in partnership with the Confederation of Indian Industry (CII). Addressing the business community, Piyush Goyal encouraged them to leverage the opportunities provided by the CEPA and forge stronger ties between Indian and UAE enterprises. The minister highlighted several key initiatives, including Virtual Trade corridors, the potential establishment of offices for the Abu Dhabi Investment Authority in GIFT City, Gujarat, the UPI partnership, and the development of an efficient system for direct Rupee-Dirham trade.

Strengthening Mutual Relations for Growth and Prosperity

H.E. Dr. Thani bin Zeyoudi reaffirmed the UAE's commitment to enhancing bilateral relations and engaging in areas of mutual importance. The UAE Government and its leadership are dedicated to collaborating closely with India to foster growth, prosperity, and welfare for both nations. The visit of the UAE delegation emphasized the significance of economic ties and underscored the shared vision of a thriving partnership.

The successful culmination of the 1st Meeting of the Joint Committee of the India-UAE Comprehensive Economic Partnership Agreement marks a significant milestone in strengthening the economic relations between the two countries. With a focus on doubling non-petroleum trade to USD 100 billion by 2030, both nations are committed to maximizing the potential of the CEPA. The operationalisation of committees, sub-committees, and the technical council, along with the establishment of the UAE-India CEPA Council, will further enhance collaboration and create a conducive environment for businesses. As India and UAE continue to work together, their partnership is poised to contribute to regional and global economic growth, fostering prosperity and well-being for their people.