Indian Economy News

India's exports to UAE likely to grow by 60% to US$ 50 billion by FY27

Government authorities believe that exports to the country would reach the US$ 50 billion mark by FY27 since India's Comprehensive Economic Partnership Agreement (CEPA) trade deal with the United Arab Emirates (UAE) has become the "fastest used" trade agreement.

“In 2026-27, we will be completing five years of (signing) CEPA, and we should be able to reach US$ 50 billion exports,” Mr. Sunil Barthwal, Secretary, Department of Commerce, told reporters on the first anniversary of the agreement.

“The trade between the two countries has grown significantly. Labour-intensive, emerging sectors have witnessed growth. The utilisation of CEPA has been remarkable. Compared to other free trade agreements (FTAs), in this FTA, a lot of the trade is happening through preferential routes,” Mr. Barthwal said.

The India-UAE CEPA outperformed nearly all other FTAs in terms of utilisation between May 2022 and March 2023, according to a study by the Department of Commerce. At 1.49 lakh, India-Association of Southeast Asian Nations (ASEAN) has the most certificates of origin (COO). This was followed by the trade deal with UAE as 54,142 COOs were issued to exporters to avail concessional duty advantage under the trade pact.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.