India, UAE sign major trade pact 2022

India, UAE sign major trade pact

Some basic facts

🍅UAE is India's third-largest trade partner currently 

🍅and the second-largest export destination after the US. 

🍅In 2021, bilateral trade between the two countries stood at $43.3 billion.

 🍅India was the UAE’s second-largest trading partner in 2019, with bilateral non-oil trade valued at 41 billion. 

🍅The UAE is the eighth-largest investor in India, having invested $11 billion between April 2000 and March 2021, 

🍅while investment by Indian companies in the UAE is estimated to be over $85 billion.

CEPA

Announcing the Comprehensive Economic Partnership Agreement (CEPA)/free trade agreement, the biggest trade pact of the last seven years.

कहाँ पर होगा इन्वेस्टमेंट

Prime Minister Narendra Modi welcomed investment from the Gulf country into Jammu and Kashmir and said the initiative would open new routes for regional trade and connectivity and advance “collective interests” of India, Israel, the UAE and the U.S.

एंटी डंपिंग का प्रावधान

Commerce and Industry Minister Piyush Goyal said the CEPA would have strong anti-dumping measures. 

आने वाले 5 सालों में कितना बड़ा हो जाएगा ट्रेड

“This agreement will herald a new age in our financial relations. Our trade in the next five years will increase from $60 billion to $100 billion,”

एक नए ग्रुप की बात यहां पर की गई  

I am confident that the grouping of ‘India-UAE-Israel-USA’ will advance our collective goals, especially in the fields of technology, innovation and finance,” Mr. Modi said.

किसके किसके बीच में एमओयू साइन हुआ है

During the virtual summit meeting, a Memorandum of Understanding (MoU) was signed between - 

🌀the International Financial Services Centers Authority (IFSCA), 🌀GIFT City and the Abu Dhabi Global Market Financial Services Regulatory Authority (FSRA). 

🌀Another MoU covered building of food corridors. “

agreement would boost the country’s exports

in a number of labour-oriented sectors including gems and jewellery, textiles, leather, footwear, sports goods, engineering goods, and pharmaceuticals.

 Annual exports 

worth about $26 billion from India that currently attract a 5-per cent import duty in the UAE are set to benefit.

The agreement covers areas including goods, services, rules of origin, Customs procedures, government procurement, intellectual property rights, and e-commerce

further tariff concessions

were expected on both sides over 5 years that would lead to lower tariffs for 98 per cent of exports and 90 per cent of imports from the UAE. 

Indian exports set to get zero duty access within a further 5 to 10 years, including electronic goods, chemicals and petrochemicals cement, ceramics and machinery accounting for about 9 per cent of the value of current exports to the UAE.

Example 

we’ve given tariff concessions to UAE on gold, and they have eliminated tariffs on jewellery.”

 Sources said India had agreed to concessional import duties on gold imports up to 200 tonnes per year. India imported about 70 tonnes of gold from the UAE in FY21.

Source the hindu