Will India-UAE CEPA benefit both economies?
The comprehensive economic partnership agreement is enforced between the two countries and would be benefiting both nations in 90 percent of their trade practices. The UAE-India CEPA is India’s first bilateral trade agreement taken in the Middle East and North Africa region.
This trade deal between India and UAE is one of the remarkable and prominent deals which has huge significance in the top leadership of the countries. Both nations’ political leadership has joined hands and are ready for the strategic approach that benefits both the countries and enhances the economy.
The CEPA is an economic transactions treaty between two nations that covers the exports and imports of various goods and services, digital trading, currency exchanges, and much more. The 90% exports of the country have gained duty-free access to the Emirates.
The India-UAE CEPA will benefit approximately $26 billion worth of Indian products that are subjected to incur five percent of import duty by UAE which is one of the third-biggest trading partners after the United States & China.The trade deal is beneficial for both nations in more than one way. It increases the exposure to the global market, enhances access, and reduces tariffs that ease the commencement of operations.
The bilateral trade deal is the first done by India and the comprehensive economic partnership agreement is the first enforced by India in a decade. This trade deal opens the door that increases bilateral trade from $60 billion to $100 billion in the coming five years, the government stated after the India-UAE Virtual Summit. The execution of this trade deal will be benefiting the Indian Exporters as they get exposure to the larger Arab and African markets. India is the largest export country for UAE and second-largest partner in 2019 owning up the foreign direct investment of about $11 billion.
The nations have entered an impeccable era that creates a myriad of opportunities and contributes towards the betterment of the India-UAE economy. The top-notch industry with high labor-intensive resources such as gems, textiles, jewelry, footwear, furniture, medical devices, automobiles, and the list goes on is expected to retain huge benefits from the CEPA agreement. India has provided duty concessions on the export of gold from the UAE while Indian exporters will receive zero percent duty on the jewelry. This shows the UAE market has more potential and if you are a foreign investor there are endless opportunities for you.
Every business sector is going to flourish at a higher pace than before in the UAE. FlyingColour Business Setup Services can help you set up a business in any category in the free zones, mainland, and even offshore with incredible exposure and global networking opportunities that takes your business to another level in no time. The foreign investors majorly struggle in finding the space, immigration, taxation, accounting services as each country runs on a different mechanism where expertise in the field can only save you money but also redirect to a safer path that helps you retain more money in the long run.
