India signs a free trade pact for duty-free exports to the Emirates

04 May 2022 CW Team

India and UAE had signed the Comprehensive Economic Partnership Agreement (CEPA) in February, which came into effect on Sunday, that allows most of India’s exports to the Emirates duty-free access.

The CEPA will be increasing the total value of bilateral trade in goods to more than $100 billion and trade in services to over $15 billion in the five years.

The commerce secretary, BVR Subrahmanyam, reportedly handed over the Certificates of Origin to three exporters from the gems and jewellery sector. The Central Board of Indirect Taxes and Customs and the Directorate General of Foreign Trade have additionally issued the relevant notifications for the operationalisation of the agreement from the beginning of this month. India stands to benefit from the preferential market access in the UAE on over 97 per cent of its tariff lines or goods, which account for 99 per cent of the country’s exports to the UAE in value terms. These are goods from the labour-intensive sectors, namely textiles, leather, footwear, sports goods, plastic, furniture and engineering products.

Goods and services exports account for about 22-23 per cent of India's GDP. The country’s vision is to take it up to 25-30 per cent.

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