India-UAE continue to enhance bilateral ties and economic cooperation
UAE -The United Arab Emirates (UAE) is currently India’s third-largest trading partner and the second-largest export destination. In recent years, exports from India to the UAE have grown exponentially. Furthermore, the Emirates has become home to 3.4 million Indians, the largest ethnic group in the country.
In February, the two countries signed a landmark Comprehensive Economic Partnership Agreement (CEPA) with the aim of boosting their bilateral Relation and economic partnership. According to industry experts, several sectors in both India and the UAE will benefit from this crucial agreement as it will strengthen exporters and businesses from the two friendly nations.
The CEPA will increase bilateral trade between the UAE and India to $100 billion from the current $60 billion in the next five years. Furthermore, it will also provide necessary employment and investment opportunities to MSMEs (Micro, Small, and Medium Enterprises). The agreement is aimed at increasing jobs to the tune of 1 million unemployed youth.
As per the CEPA, 80 percent of the tariff lines covering nearly 90 percent of India’s export value to the UAE will be removed. After the implementation of the CEPA, tariff-free access will increase to approximately 97 percent over the next few years.
UAE-India economic ties
As per reports, India is one of the first nations to sign a bilateral deal with the UAE to expand growth and development in key sectors. This will improve our bilateral relationship between India and UAE. Petroleum products, gems and jewelry, apparel, iron and steel, and telecom equipment comprise two-thirds of India’s exports to the UAE. Evidently, these industries will enjoy significant benefits from the CEPA.
UAE investments in India
UAE companies have undertaken major investments in India. According to reports, the UAE’s total investment in India is estimated to be around $14 billion.
- EMAAR, a real estate company of the Dubai Government, is actively working in India, with a major township, international convention centre in Hyderabad.
- Abu Dhabi Investment Authority (ADIA) is among the most active foreign investors in India and has deployed its funds in real estate.
- Abu Dhabi-based retail giant, Lulu Group, launched an AED1.7 billion ($460 million) mixed-use project in Andhra Pradesh.