India-UAE Business Summit Strengthens Bilateral Ties
Context:
Recently, the India-UAE Business Summit was convened as part of the Vibrant Gujarat Global Summit 2024 to fortify bilateral relations.
Relevance:
GS-03 (Economy)
Inaugural Session Highlights:
- During the summit’s inaugural session, the launch of the UAE–India Comprehensive Economic Partnership Agreement (CEPA) Council (UICC) website was announced.
- The event featured discussions aimed at fostering collaboration in trade finance, investment facilitation, and sectoral partnerships.
- Delegations from both India and the UAE, comprising representatives from government and industry, participated.
- A presentation on Bharat Mart, a proposed warehousing facility in the UAE to support Indian exporters, was also part of the session.
India – UAE Economic Relations:
- In terms of India-UAE relations, bilateral trade reached USD 85 billion in 2022, establishing the UAE as India’s third-largest trading partner for the fiscal year 2022-23 and its second-largest export destination.
- In February 2022, India and the UAE signed a historic Comprehensive Economic Partnership Agreement (CEPA), marking a significant milestone. Since the CEPA’s implementation on May 1, 2022, bilateral trade has experienced a notable uptick, witnessing a 15% increase.
- The CEPA has played a crucial role in reducing tariffs on over 80% of product lines, eliminating trade barriers, and paving the way for new investment opportunities and joint ventures.
- The first 12 months of the CEPA saw bilateral non-oil trade reaching US$50.5 billion, reflecting a 5.8% growth compared to the corresponding period in the previous year.
