India UAE signs FTA, import duty on exports to reduced

Union Minister Piyush Goyal and UAE Minister Tauq Al-Marri signed the deal in New Delhi. 

India has signed a trade pact with the United Arab Emirates (UAE). The signing of this pact will reduce the import duty on most Indian exports to the UAE. 

The Comprehensive Economic Partnership Agreement (CEPA), the first major trade deal since the Narendra Modi government came to power in 2014, has been completed in record time. The deal was signed in New Delhi by Commerce and Industry Minister Piyush Goyal and UAE’s Minister of Economy Abdullah bin Touq Al Marri. 

Export of gems-jewelry and clothing will increase. 

With the signing of this deal, there will be a reduction in import duty on a wide range of products. The government hopes that this will increase the export of gems-jewelry and clothing. Trade with UAE could reach $100 billion in the next five years. India is the third-largest trade partner of the UAE globally after the US and China. By 2020-21, bilateral trade between the two countries stood at $43.3 billion. In 2019-20, before the Corona epidemic, trade between the two countries was close to $ 59 billion. 

PM Modi expressed happiness over the deal. 

Prime Minister Narendra Modi said at the India-UAE Virtual Summit, ‘I am very happy that both the countries have signed the Comprehensive Economic Partnership Agreement (CEPA) today. At the same time, Union Minister Piyush Goyal said, ‘The deal is done and signed a pathbreaking deal with Minister H.E. Abdullah bin Touq Al Marri. The sky is the limit of our trade and economic ties. 

What does India export to UAE? 

India’s major exports to the UAE include petroleum products, precious metals, stones, gems and jewelry, minerals, food items such as cereals, sugar, fruits and vegetables, tea, meat and seafood, textiles, engineering, and machinery products and chemicals.