India-UAE Comprehensive Economic Partnership Agreement (CEPA)
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has significantly boosted Indian investments in Dubai across various sectors.
Key Sectors of Investment
- Software and IT services
- Consumer products
- Business services
- Food and beverages
- Real estate
These sectors have benefited from the agreement's trade facilitation measures and streamlined regulatory environment.
Growth Areas
- Trading
- Logistics
- Manufacturing
These areas have experienced growth due to tariff reductions and streamlined trade procedures facilitated by CEPA.
Economic Impact
- The CEPA came into effect on May 1, 2022.
- The UAE is India's third-largest trading partner.
- India's goods exports to the UAE in April-February FY25 were $33.23 billion.
- Imports from the UAE amounted to $55.74 billion during the same period.
Potential Areas for Collaboration
- Artificial intelligence
- E-commerce
- Specialized healthcare
- Advanced manufacturing
India's foreign direct investment (FDI) into Dubai reached $4.1 billion in 2020–2024, indicating strong potential for collaboration in these fields.
Dubai’s Investment in India
- Top sectors for investment include transportation and warehousing.
- Business services
- Real estate
- Software and IT services
- Financial services
India's strength and expertise in IT and technology ensure effective synergies between the markets of India and Dubai.
