India-UAE CEPA Marks 3 Years of Strengthening Economic Ties

Post by: Bandan Preet

The India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA) has been completed three years since it was signed. The Ministry of Commerce and Industry shared this news in an official statement on Tuesday.

CEPA is a significant trade agreement between India and the UAE. It was signed on February 18, 2022, during a virtual summit attended by Indian Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, who is also the Ruler of Abu Dhabi. The agreement officially came into effect on May 1, 2022.

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Since the implementation of CEPA, trade between the two countries has grown substantially. The total value of merchandise trade has nearly doubled, increasing from USD 43.3 billion in the financial year 2020-21 to USD 83.7 billion in 2023-24. In the current financial year (April to December 2024), the trade value has already reached USD 71.8 billion.

One of the key achievements of CEPA is the diversification of trade. Non-oil trade has risen to USD 57.8 billion in 2023-24, making up more than half of the total trade between the two nations. This growth aligns to reach USD 100 billion in bilateral non-oil trade by 2030.

Since CEPA came into force, nearly 2,40,000 Certificates of Origin have been issued. These certificates allow exporters to take advantage of the agreement’s preferential trade terms. As a result, Indian exports worth USD 19.87 billion have been sent to the UAE under CEPA benefits.

India’s non-oil exports to the UAE have also grown significantly. In 2023-24, these exports reached USD 27.4 billion, with an average annual growth rate of 25.6% since the agreement took effect. Apart from traditional exports like petroleum products and gems and jewelry, there has been strong growth in the export of electrical machinery, industrial equipment such as boilers and generators, and chemical products.

Among various export items, smartphones have emerged as a major product. In 2023-24, India exported smartphones worth USD 2.57 billion to the UAE, highlighting the increasing demand for Indian-made electronic goods.

Since the CEPA was signed, both governments have worked together to resolve trade-related challenges. Regular high-level meetings and technical discussions have been held to address concerns raised by exporters from both countries.

To monitor the progress of CEPA, a Joint Committee was set up. This committee, which includes senior officials from both sides, has met twice so far. The most recent meeting was held in October 2024. Additionally, the Trade in Goods Committee has also met multiple times to resolve trade-related issues.

In a spirit of partnership and trust, both countries have taken concrete steps to ensure smooth trade operations. Several sub-committees have been set up to focus on specific areas such as trade-in services, rules of origin, customs procedures, and trade facilitation.

A key milestone in strengthening trade relations is the launch of the Bharat Mart initiative in Dubai. This initiative, inaugurated by Prime Minister Modi, will serve as a one-stop destination for Indian manufacturers to showcase their products to global buyers. It is expected to boost India’s exports significantly.

According to the Ministry of Commerce and Industry, the India-UAE CEPA has ushered in a new era of economic cooperation and diplomacy. The agreement has helped empower small and medium-sized businesses, create employment opportunities, and open new doors for business expansion. Both nations remain committed to deepening their trade ties and achieving even greater economic growth in the years ahead.

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