India -UAE Comprehensive Economic Partnership Agreement (CEPA)-Feb,2022

India -UAE Comprehensive Economic Partnership Agreement (CEPA) 

Union Commerce and Industry Minister Shri Piyush Goyal has termed the India-UAE Comprehensive Economic Partnership Agreement, signed Friday as a landmark pact, that will open up new markets for Indian goods and services.

Highlights of CPEA-

•  India -UAE Comprehensive Economic Partnership Agreement (CEPA) will be extremely beneficial for MSMEs, startups, farmers, traders and all sections of businesses.  
•  The labour-intensive industries like Textiles, Gems and Jewellery, Leather goods and footwear and food processing industry would be prominent among those to benefit the most.
•  CEPA is a balanced, fair, comprehensive & equitable partnership agreement, which will give enhanced market access for India in both goods and services.   “It will create jobs for our youth, open new markets for our startups, make our businesses more competitive & boost our economy”. 
•  Sector-wise consultations have shown that the pact will create a minimum of 10 lakh jobs for Indian citizens.
•  CEPA which was finalized and signed in a record time of just 88 days, would come into force in less than 90 days, by early May. He told the media that “around 90% of products exported from India to UAE will attract zero duty with the implementation of the Agreement. 80% lines of trade will attract zero duty, remaining 20% does not affect our exports much, so this is a win-win agreement.”
• For the first time in a Trade agreement, the CEPA provides for automatic registration and marketing authorisation of Indian generic medicines in 90 days, once they are approved in any of the developed countries. This will give big market access to Indian medicines.
• Indian jewellery exporters will get duty-free access to the UAE, which currently imposes a 5% customs duty on such products. This will substantially raise its jewellery exports since Indian designed jewellery enjoys a great market reputation. The Gems and Jewellery sector expects to increase its exports to US$ 10 billion by 2023. 
• The CEPA will not only improve the competitiveness of Indian products but also provide strategic advantages to India. “Since UAE functions as a trading hub, the Agreement will help provide us market entry points to Africa, the Middle East and Europe”.

 The conclusion of the CEPA, India and UAE aims to increase bilateral goods trade over the next five years to $100 billion. “However, It believes that the potential for trade between the two nations is even bigger and surpass the target ”. UAE is India’s third-largest bilateral trading partner.