In honor of India’s 75th year of independence and the UAE’s 50th anniversary of independence, the two nations have inked a comprehensive economic partnership deal that would allow duty-free food exports, as well as textiles, gems, jewelry, and medicines.
While India’s highly skilled professionals will also get access to the UAE market through this practical policymaking, India will also get access to the majority of the countries in the Gulf region through the UAE as the emirate is also a gateway to Africa.
On the other hand, the UAE will get increased access to the Asian market through India, and as a result of this trade pact, the bilateral trade is projected to increase from 60 billion dollars annually to a hundred billion in five years. Now, the ninety percent of Indian exports that will see zero duty include textiles, gems, jewelry, plastics, automobiles, leather, footwear, engineering, and agricultural products.
The trade agreement is also expected to add at least 0.7 to India’s GDP and around 1.7 to the UAE’s economy, while 140,000 jobs are estimated to be created in the UAE around 1 million jobs will be created in India also giving a major boost to the pharma companies. The UAE will allow market access for the Indian pharma firms once they are approved in the US, UK, and other developed markets.
Thani Bin Ahmed Al Zeyoudi who is the minister of state for foreign trade UAE said in a press conference “it was clear from day one that we shared the same sense of purpose and of our businesses innovators and entrepreneurs engaged in the same spirit there is no limit to the progress we’ll make together. The india comprehensive economic partnership agreement marks the beginning of the world exciting new era of our nations it’s promises to unlock a new era of home optimism.”
The UAE is India’s third-largest trade partner globally and after the united states and china and the bilateral trade between both nations stood at 43.4 billion as of 2020 to 202. While in the pre-pandemic year of 2019-2020 trade between the two countries was estimated at 59 billion dollars.
The UAE is also home to 35 lakh Indian-origin persons and now Indian investors can also set up industrial advanced tech zones in Abu Dhabi. Piyush Goyal who is the Commerce Minister of India said in a press conference that “this is an appropriate time to reset our relationship taking it to much greater levels than ever before and ever since 2017 when both countries embarked on a comprehensive strategic partnership covering a very wide array of subjects ever since the growing bonds between the leaders of the two countries prime minister Narendra Modi and his highness the crown prince of UAE we have been witnessing a growing synergy between the two countries.”
However, to prevent the misuse of the trade agreement a permanent safeguard mechanism has been put in place around 80 percent of goods and services have been included in the deal. While 20 of goods that are considered sensitive will take more time to reach a state when the tariffs can be reduced and analysts say that the trade agreement in addition to the upcoming potential free trade agreements with the European Union Australia, Canada, Israel, and the United Kingdom will give a major boost to Indian exports.