Free Trade Agreement Between India And UAE Implemented

Free trade agreement between India and UAE implemented, products of many regions will benefit: India-UAE Trade Pact.

The Free Trade Agreement between India and the UAE has come into force on Sunday, under which domestic exporters from various sectors such as textiles, agriculture, dry fruits, gems, and jewelry, will get duty-free access to the UAE market.

Commerce Secretary BVR Subrahmanyam handed over the certificates of origin to three exporters in the gems and jewelry sector here in a symbolic gesture of implementation of the agreement.

These consignments to Dubai will not attract any customs duty under the agreement, officially called the Comprehensive Economic Partnership Agreement (CEPA).

The Central Board of Indirect Taxes and Customs (CBIC) and the Directorate General of Foreign Trade (DGFT) have issued relevant notifications for the operationalization of the agreement from May 1.

“CEPA is under implementation between India and UAE. We are sending the first consignment from India to UAE, which will benefit from this agreement,” Subramaniam said.

He said that the UAE is India’s second our third-largest trading partner and that country is the gateway to the Middle East, North Africa, Central Asia, and Sub-Saharan Africa.

The trade agreement will help take two-way trade from the current US$60 billion to US$100 billion in five years. “US$100 billion is just the beginning.”

“As we move forward, it will be USD 200 billion and then USD 500 billion in the years to come,” the commerce secretary said.

He said that 99 percent of our exports will go to the UAE at zero duty.

The gems and jewelry sector accounts for a major share of India’s exports to the UAE and is expected to benefit significantly from the tariff concessions received for Indian products under this agreement.

Overall, India would benefit from the preferential market access provided by the UAE on over 97 percent of the tariff lines (or goods).