Abdulla bin Touq, UAE Minister of Economy, has arrived in Delhi with a high-level delegation to explore prospects of joint investments under the newly inked economic partnership with India.
India and the Emirates signed the Comprehensive Economic Partnership Agreement, or CEPA, in February.
The agreement, which came into effect on May 1, marks a new phase of strategic co-operation and will open additional avenues of investment and trade for companies in India and the UAE.
The trade pact is aimed at accelerating the flow of goods and increasing bilateral trade volumes through duty-free exports.
The benefits include enhanced market access, lower or eliminated tariff rules, simpler customs procedures, clear and transparent protocols and rule-based competition.
“The visit provides an excellent opportunity to further strengthen the already close and dynamic economic ties between the two countries,” India’s Ministry of Commerce said.
“The visit also includes interactions with key investors of both sides.”
Mr bin Touq is leading a delegation of 80 representatives, including 41 from government and private companies, who will discuss further opportunities under the new trade mechanism with their Indian counterparts during the four-day visit.
“The visit will also brief the UAE delegation about the facilities and services that the historic CEPA will provide to companies and businesses in both countries,” the UAE’s embassy in Delhi said.
The CEPA will provide opportunities for building new and sustainable partnerships between the two countries and take the bilateral economic relations to unprecedented levels, the embassy said.
On Wednesday, India’s Commerce Minister Piyush Goyal will meet Mr bin Touq and the delegation that includes Dr Ahmad Belhoul Al Falasi, Minister of State for Entrepreneurship and SMEs.
The delegates will also attend the UAE-India Economic Partnership Summit on Friday in Delhi.
The UAE is currently India’s third-largest trading partner and the second-largest export destination after the US. India is the UAE’s second-largest trading partner and the largest in terms of exports.
India accounted for nine per cent of the total volume of the UAE's trade with the world in 2021, while bilateral trade between the countries stood at $65 billion, according to India’s Ministry of Commerce.
But with CEPA – the UAE’s first comprehensive strategic partnership with any country and India's first in a decade – both nations aim to increase non-oil bilateral trade to $100 billion in the next five years.
The high-level delegation will focus on priority sectors for co-operation that remain key drivers for boosting bilateral ties such as manufacturing, aviation, financial services, food security, transport and infrastructure.
UAE and India gold trade pact takes effect - in pictures
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The Gold Souk in Deira on the banks of the Dubai Creek. An agreement between the UAE and India is expected to boost trade in gold, benefitting jewellers and shoppers. All photos: Antonie Robertson / The National -
Chandu Siroya, managing director of Siroya Jewellers, says the UAE India trade pact is a win-win for both countries. -
Import duties have been removed for jewellery exported to the UAE from India. -
India has agreed to a one per cent concession on duty on gold imports from the UAE for up to 120 tonnes of gold in the first year, rising to 200 tonnes in five years. -
The UAE accounts for 80 per cent of India’s plain gold jewellery exports and 20 per cent of studded jewellery exports. -
Some of the jewellery from India, Italy and Turkey on display at Siroya Jewellers in Dubai. -
A jeweller examines a necklace at Siroya Jewellers in Dubai. -
Dubai is set to become a major gateway for Indian jewellery to the world, because of the economic agreement. -
The family-owned Siroya Jewellers is one of Dubai’s biggest wholesalers, supplying jewellery to more than 30 countries. -
Gem and jewellery exports to the UAE declined to US$1.18 billion in 2020-2021 during the Covid-19 pandemic. -
With the duty waiver, India's Gem and Jewellery Export Promotion Council has said exports of gold from India to the UAE are expected to grow to US$10 billion in 2023.
