India and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement covering goods, services and digital trade, among others, that will allow 90% of the country’s exports a duty-free access to the Emirates.
The 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.
The bilateral trade pact is India’s first in the region and the first comprehensive trade agreement with any country in a decade.
“It is expected that the CEPA will lead to increase in bilateral trade from the current $60 bn to $100 bn in the next 5 years,” the government said in a statement after the India-UAE Virtual Summit attended prime minister Narendra Modi and the crown prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan.
“HH @MohamedBinZayed and I believe that the India-UAE CEPA signed today will be a game-changer in our economic ties,” PM Modi tweeted after the virtual summit.
Through the pact, Indian exporters will also get access to the much larger Arab and African markets