The government said India’s automobile exports to the UAE are projected to increase by $160 million in the next five years while engineering exports are seen growing 10% in the first two years and 15% in the next three years at $7 billion, $8 billion and $9. 2 billion in FY25, FY26 and FY27, respectively, due to the Comprehensive Economic Partnership Agreement that the two sides have inked.
India and the UAE on Friday signed the CEPA or an FTA that covers goods, services, investment, digital trade, government procurement and rules of origin, among others. “After India gets the FTA benefit, the average per unit price for India manufactured vehicles will reduce to $12,218 from $12,829, which should benefit us,” the commerce and industry ministry said in a statement.
Exports of plain gold jewellery and gold-studded jewellery would increase to $10 billion in 2023 and the tariff concessions offered to the UAE by India in products like gold will reduce the import cost of inputs, according to the ministry.
“The expected growth (CAGR of 26-28%) of pharma and medical devices in the next five years can touch over $1 billion,” it said.