On Sunday, officials from the Ministry of Trade and Industry will announce the first shipment of goods from India to the UAE under the pact.
CEPA is expected to benefit around $26 billion worth of Indian products that are currently subject to 5% import duties by the United Arab Emirates, India’s third-largest trading partner behind the United States and China.
“We expect exports to reach $40 billion this year, up from around $26 billion last year, driven by labor-intensive sectors such as gemstones and jewelry” said Ajay Sahai, chief executive of the Federation of Indian Export Organizations (FIEO).
India will benefit from the preferential market access provided by the UAE on more than 97% of its tariff lines, which represent 99% of India’s exports to the UAE in terms of value, especially for all labour-intensive sectors. labor such as gemstones and jewelry, textiles, leather. , footwear, sporting goods, plastics, furniture, agricultural and wood products, engineering products, medical devices and automobiles.
Sahai said India’s $250 million in pharmaceutical exports to the UAE could see a big increase as the two sides also agreed on a separate annex on pharmaceuticals to facilitate access for Indian pharmaceuticals, especially automatic registration and marketing clearance in 90 days for products meeting specified requirements. Criteria.
New Delhi will provide preferential access to the UAE on over 90% of its tariff lines, including lines of export interest to the UAE.
India and the United Arab Emirates had signed a CEPA on February 18 to increase bilateral trade to 100 billion dollars over five years, against 60 billion dollars currently.
“That $100 billion goal can actually be reached in 2-3 years,” an industry representative said.
The bilateral trade pact is India’s first in the region and the first comprehensive trade deal with a country in a decade.
In the area of services, India has offered access to the UAE market in around 100 sub-sectors, while Indian service providers will have access to around 111 sub-sectors of the 11 major service sectors such as ” business services”, “communication services”, construction and related engineering services”, “distribution services”, “educational services”, “environmental services”, “financial services”, “services related to health and social services”, “services related to tourism and travel”, “recreational, cultural and sporting services” and “transport services”.