AG Newsletter - Q1 Edition
The strategically important CEPA agreement between India and UAE is providing substantial growth to the bilateral trade in goods and services. The preferential market access to Indian goods in labor-intensive sectors such as Textiles, Gems & Jewellery, Automobiles, Sports, Leather, Plastic, Furniture, Agricultural and Wood Products, Medical Devices, Pharmaceuticals, etc is expected to touch the mark of US$ 100 billion in coming five years. The rise in service sector export between India and UAE is also expected to cross the mark of US$ 15 billion in the same duration as the bilateral trade between two countries under preferential access accounts for 99% of Indian exports in value terms. The historic partnership within a year of its implementation proved to be the growth engine that accelerated the pace of bilateral trade with a year-on-year increase of 16% between FY 2021 to FY 2022. The agreement is also expected to strengthen the ties between the two countries while fulfilling the mutual aspirations of establishing UAE as a gateway to the world and achieving India’s US$ 40 trillion vision in the next 25 years. The growth story is still unfolding and the increasing trade volume across the sectors is positively impacting the macroeconomic stability and GDP growth of partner countries.