India signs free trade agreement with UAE

News Desk :

India has signed a trade pact with the United Arab Emirates (UAE) that will reduce import duties on the majority of Indian exports to the country. The  Comprehensive Economic Partnership Agreement (CEPA) is the first major trade deal signed by the Narendra Modi government since first coming to power in 2014.
The deal was signed in New Delhi by Commerce and Industry Minister Piyush Goyal and UAE's Minister of Economy Abdulla bin Touq Al Marri. While it cuts import duties on a wide range of products, the government expects it to especially boost the export of gems and jewellery, and apparels to the UAE and raise total trade up to $100 billion in the next 5-years.
UAE is India's third-largest trade partner globally, after the United States and China. Bilateral trade between both nations stood at $43.3 billion as of 2020-21 and is spread across thousands of traded items. In 2019-20, the pre-pandemic year, trade between the two countries was estimated at $59 billion. The UAE is also home to 35 lakh Indian-origin persons.
The CEPA is expected to come into effect by the first week of May since the process will take about 60-days, Goyal said. During that time, a series of business interactions will be held across India, between businesses from both sides.
The 880-page document covers topics such as free trade, digital economy, government procurement, strategic areas, Goyal said. Almost 90 percent of all traded items are set to benefit from the deal, he added.