New Delhi, May 2: The India-UAE Comprehensive Economic Partnership Agreement (CEPA) entered into force on Sunday, with both the sides issuing necessary notifications to facilitate the implementation of the free trade agreement (FTA). The CEPA was signed by both the economies on February 18.
According to the pact, the UAE will allow as many as 99% of Indian goods (in value terms) at zero duty in five years from about 90% in the first year. Similarly, India would allow duty-free access to 80% of goods from the UAE now, and it would go up to 90% in 10 years.
Indian labour-intensive sectors, such as gems & jewellery, textiles & garments, leather, footwear, sports goods, plastics, furniture, agricultural and wood products stand to gain from the FTA, along with other sectors like engineering products, pharmaceuticals, medical devices and automobiles. Indian service providers, too, will have greater access to around 111 sub-sectors from the 11 broad service categories.
Commerce secretary BVR Subrahmanyam, who flagged off the first consignment of goods (jewellery products) that will be despatched to Dubai at zero duty under the CEPA, called the agreement a “trendsetter”. Malabar Gold (Calicut), Hasmukh Parekh Jewellers (Kolkata) and Emerald Jewel Industry India (Coimbatore) became the first set of exporters to supply under the FTA.
He exuded confidence that bilateral trade (both goods and services) could beat the initial target of $115 billion in five years from about $60 billion in the pre-pandemic year. The secretary handed over the certificates of origin to three gems & jewellery exporters in Delhi on Sunday. Director-general of foreign trade Santosh Kumar Sarangi was also present.
