Union Minister Piyush Goyal said India -UAE Comprehensive Economic Partnership Agreement (CEPA) will be extremely beneficial for MSMEs, start-ups, farmers, traders and all sections of businesses.
Goyal said the Free Trade Agreement (FTA) signed Friday between the two countries will open up new markets for Indian goods and services and create as many as 10 lakh jobs in India.
Goyal while speaking at a press conference in Mumbai, said the labour-intensive industries like Textiles, Gems and Jewellery, Leather goods and footwear and food processing industry would be prominent among those to benefit the most.
The minister further said that “around 90% of products exported from India to UAE will attract zero duty with the implementation of the Agreement. 80% lines of trade will attract zero duty, remaining 20% does not affect our exports much, so this is a win-win agreement.”
For the first time in a Trade agreement, the CEPA provides for automatic registration and marketing authorisation of Indian generic medicines in 90 days, once they are approved in any of the developed countries. This will give big market access to Indian medicines.
Indian jewellery exporters will get duty-free access to the UAE, which currently imposes a 5% customs duty on such products. This will substantially raise its jewellery exports since Indian designed jewellery enjoy a great market reputation. The gems and jewellery sector expects to increase its exports to $10 billion by 2023.
The CEPA will not only improve the competitiveness of Indian products but also provide strategic advantages to India. “Since UAE functions as a trading hub, the Agreement will help provide us market entry points to Africa, the Middle East and Europe” the Minister added. Shri Piyush Goyal noted that with the conclusion of the CEPA, India and UAE aim to increase bilateral goods trade over the next five years to $100 billion.
“However, I believe that the potential for trade between the two nations is even bigger, we will surpass the target we have set for ourselves”, he said. UAE is India’s third-largest bilateral trading partner.
