Trade pact with UAE may benefit $26 bn worth of Indian goods: Official
- IBEF
- February 21, 2022
According to an official, the comprehensive free trade deal between India and the UAE will benefit roughly US$ 26 billion worth of domestic products such as diamonds and jewellery, which are now subject to a 5% import charge by the Gulf nation.
On February 18, India and the United Arab Emirates inked a comprehensive economic partnership agreement (CEPA) with the goal of increasing bilateral trade in goods to US$ 100 billion over the next five years and creating thousands of jobs. "While the UAE is already India's second-largest export destination with exports valued at approximately US$ 29 billion in 2019-20, CEPA with UAE is likely to benefit about US$ 26 billion worth of Indian products that are subjected to 5% import duty by the UAE," the official said.
According to estimates, simple gold and gold-studded jewellery exports will reach US$ 10 billion in 2023, and India's tariff concessions to the UAE on products like gold will lower input import costs. Over the next five years, textile exports are expected to expand by US$ 2 billion. The UAE is giving overall duty elimination on over 97% of its tariff lines (or items), equating to 99% of India's exports in value terms, as part of the agreement.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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