1.5.22

India-UAE Comprehensive Economic Partnership Comes into Force Today

The Comprehensive Economic Partnership Agreement between India and the United Arab Emirates will come into force on May 1. The deal will allow 90% of the country’s exports dutyfree access to the emirates.

Officials of the commerce and industry ministry will flag off the first consignment of goods from India to UAE under the pact on Sunday. CEPA is likely to benefit about $26 billion worth of Indian products that are currently subjected to 5% import duty by the UAE, India’s third-biggest trading partner behind the US and China. “We expect exports to go upto $40 billion this year from around $26 billion last year, led by labour intensive sectors such as gems and jewellery,” said Ajay Sahai, director general of Federation of Indian Export Organisations.

India will benefit from preferential market access provided by the UAE on over 97% of its tariff lines which account for 99% of Indian exports to the UAE in value terms, especially for all labour-intensive sectors including gems and jewellery, textiles,leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products,medical devices, and automobiles.

New Delhi will offer preferential access to the UAE on over 90% of its tariff lines, including lines of export interest to the UAE.

Sahai said that India’s $250 million to the UAE of pharma exports could see a sharp increase as both sides have also agreed to a separate Annex on pharmaceuticals to facilitate access of Indian pharmaceuticals products, especially automatic registration and marketing authorisation in 90 days for products meeting specified criteria.

No comments: