The UAE-India Comprehensive Economic Partnership Agreement (CEPA) has proven to be highly successful, strengthening the enduring economic bond between the two countries and marking the beginning of a prosperous new chapter. With two years elapsed since its signing and implementation, the CEPA has notably boosted trade, witnessing bilateral transactions surge from USD 72.9 billion to USD 84.5 billion, marking a remarkable year-on-year growth of 16 percent.
Key Indian export sectors have demonstrated significant expansion, notably with Indian gems and jewellery exports to the UAE soaring by nearly 64 percent within a span of two years. Additionally, crucial Indian export sectors like pharmaceuticals and fruit and vegetable products have also witnessed substantial growth.
Celebrating two years of UAE-India CEPA, Dr Abdulnasser Alshaali, Ambassador of the UAE to India, said, “The UAE-India CEPA has emerged as a resounding success story, solidifying our nations’ long-standing economic ties and ushering in a new era of prosperity”.
“Over the past two years, we have witnessed remarkable growth in bilateral trade, a testament to the immense potential that exists when our complementary strengths are harnessed effectively. The CEPA has not only opened new avenues for businesses to benefit from the bilateral partnership but has also fostered deeper integration of our economies, paving the way for increased investment flows and collaboration across diverse sectors”, Dr Abdulnasser Alshaali said.
In addition to driving direct trade, the CEPA has paved the way for numerous investment advantages, instilling a deep sense of confidence and ambition within both the UAE and Indian business sectors. Noteworthy investments include the establishment of Bharat Mart in Dubai and substantial investments from prominent UAE entities into the Indian economy. Examples include the Abu Dhabi Investment Fund's commitment to launching a USD 5 billion fund in partnership with Gujarat's GIFT City, Mubadala's acquisition of an eight percent stake in Manipal Health, and the Lulu Group's ambitious expansion plans in India's retail market. These instances firmly underscore the mutually beneficial impacts of the CEPA.
The creation of the UAE-India CEPA Council reaffirms the dedication of both nations to fortifying their economic collaboration. Backed by the UAE and Indian authorities, this council seeks to bolster investment and trade connections, solidifying the vibrant economic bond established by the CEPA. The accomplishments of the UAE-India CEPA underscore the strong alliance between these nations and the transformative influence of economic unity. As the UAE commemorates the two-year anniversary of the CEPA, it reiterates its resolve to further enhance its partnership with India.