3 years of India- UAE Comprehensive Economic Partnership Agreement (CEPA) | Current Affairs | Vision IAS
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    3 years of India- UAE Comprehensive Economic Partnership Agreement (CEPA)

    Posted 24 Feb 2025

    2 min read

    India- UAE CEPA was signed on 18th February 2022 and entered into force on 1st May 2022.

    About India-UAE CEPA

    • It is the first deep and full-fledged Free Trade Agreement, signed by India with any country in the past decade.
    • It covers Trade in Goods and Services, Pharmaceutical products, IPR, Investment, etc.

    Significance of India- UAE CEPA

    • Boost bilateral trade in goods to US$100 billion and trade in services to US$15 billion over next five years.
    • Create more than one million jobs opportunities for Indian workforce through enhanced trade liberalisation and market access. 
    • Enable preferential market access for India’s labour-intensive goods like textiles, engineering goods etc.
    • Ensure zero-duty market access for 90% of exports from UAE into India, benefitting UAE commodity exporters of petrol chemicals, aluminum, and copper.
    • Enhance Indian exporters’ access to UAE’s neighbouring regions, especially Gulf Cooperation Council states.

    Progress made under India- UAE CEPA

    • Bilateral Merchandise trade: Nearly doubled from USD 43.3billion (FY 2020-21) to USD 83.7billion (FY 2023-24).
    • Export Growth: Non-oil exports hit USD 27.4B in 2023-24, led by refined crude, gems & jewellery, high-tech goods, and chemicals.
    • MSMEs Boost: Increased market access & employment, with Bharat Mart in Dubai enhancing global trade.

    India-UAE Bilateral Relations

    • Diplomatic Ties: Established in 1972.
    • Trade: UAE ranks as India's third-largest trading partner and second largest export destination, with exports over US$ 35.62 billion in FY 2023-24.
    • Defense: Desert Eagle bilateral exercise between air forces of both countries, Joint Military Exercise Desert Cyclone etc.
    • Tags :
    • India- UAE CEPA
    • India- UAE
    • Desert Cyclone
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