India and the United Arab Emirates have taken significant strides in strengthening their economic partnership during recent high-level discussions focused on enhancing market access and establishing crucial data sharing protocols.
Key Negotiations and Agreements
The bilateral talks, held between commerce secretary Sunil Barthwal and UAE's undersecretary of foreign trade Juma Al Kait, centered on advancing the implementation of the Comprehensive Economic Partnership Agreement (CEPA) that came into effect in May 2022. Both nations explored mechanisms to streamline trade procedures and address existing market access barriers that have hindered optimal utilization of the trade pact.
The discussions yielded concrete progress on multiple fronts, particularly regarding mutual recognition agreements that would facilitate smoother trade flows. Officials from both countries worked towards establishing protocols for the exchange of essential trade-related data, a move expected to significantly reduce transaction costs and processing times for businesses operating between the two nations.
CEPA Implementation and Trade Growth
Since the implementation of the India-UAE CEPA, bilateral trade has demonstrated remarkable growth, increasing from $72.8 billion in 2021-22 to $84.5 billion in 2022-23. The agreement has substantially reduced tariffs on approximately 97% of Indian exports and 90% of UAE exports to India, creating new opportunities across multiple sectors.
The trade pact has particularly benefited Indian exports in labor-intensive sectors including textiles, agriculture, leather, footwear, and sports goods. Simultaneously, Indian industries have gained improved access to UAE markets for engineering products, automobiles, and various other manufactured goods.
Future Collaboration and Strategic Partnership
Both nations have committed to establishing a dedicated payment platform specifically designed to facilitate transactions between India and the UAE. This initiative aims to streamline cross-border financial operations and further enhance trade efficiency.
The discussions also covered broader aspects of economic cooperation, including potential collaboration in digital infrastructure development and exploring new avenues for investment partnerships. The ongoing negotiations reflect the strategic importance both countries place on their economic relationship and their shared commitment to creating a more integrated economic space.
As the implementation of CEPA continues to evolve, both India and the UAE are working to address remaining challenges and identify new opportunities for deepening their economic engagement. The recent talks mark another significant step in what has become one of the most important bilateral trade relationships in the region.
