INDIA-UAE VIRTUAL SUMMIT

FIRMING UP A CEPA

India and the United Arab Emirates (UAE) firms up a Comprehensive Economic Partnership Agreement (CEPA) during a virtual summit between Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed al Nahyan. This is the first major trade deal that has been implemented by the Modi government and whose negotiations have been completed in record time, having been officially launched in September 2021. The agreement has been signed by commerce and industry minister Piyush Goyal and the UAE’s minister of economy Abdulla bin Touq Al Marri. CEPA acts as a precursor to a major Free Trade Deal (FTA) between the oil-rich Gulf nation and India. The much anticipated virtual summit is taking place at a time when India is celebrating 75 years of independence and the UAE is marking its Year of The 50th which shall last till March 31, 2022.

The summit also witnessed the release of a new vision document between both countries — Advancing The India-UAE Comprehensive Strategic Partnership: New Frontiers, New Milestones. The statement establishes a roadmap for a future-oriented partnership between India and UAE and identifies focus areas and outcomes. The shared objective is to promote new trade, investment and innovation dynamic in diverse sectors, including economy, energy, climate action, emerging technologies, skills and education, food security, healthcare and defence and security. The agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs. It is expected that the CEPA will lead to increase in bilateral trade from the current $60 billion to $100 billion in the next 5 years. The two leaders also released joint commemorative stamp on the occasion of 75th anniversary of India's independence and 50th year of UAE's foundation.

Two MOUs signed between Indian and UAE entities were also announced during the Summit. These are, MOU between APEDA and DP World and Al Dahra on Food Security Corridor Initiative and MOU between India's Gift City and Abu Dhabi Global Market on cooperation in financial projects and services. Two other MOUs - one on cooperation in climate action and the other on Education have also been agreed between the two sides.

The two leaders also discusses bilateral cooperation and exchange views on regional and international issues of mutual interest. n recent years, bilateral relations between India and the UAE have strengthened in all areas, and both sides have embarked upon a comprehensive strategic partnership. Prime Minister visited UAE in 2015, 2018 and 2019 while the Crown Prince of Abu Dhabi visited India in 2016 and 2017. Ministerial visits between the two sides have also continued, including three visits of External Affairs Minister and a visit of Commerce and Industry Minister to UAE in 2021. Both sides have collaborated closely during the Covid-19 pandemic in critical areas of healthcare and food security. Bilateral trade, investment and energy relations have remained robust. The two sides are also strengthening their cooperation in new areas of renewable energy, start-ups, fintech, etc. India is participating with one of the largest pavilions in the Dubai Expo 2020.

UAE hosts a large India community which numbers close to 3.5 million. Prime Minister has expressed India’s appreciation to the leadership of UAE for supporting the Indian community during the pandemic. UAE leadership has also been appreciative of the contribution of the Indian community in its development. Both sides had agreed on an Air Bubble Arrangement in 2020 during the pandemic which has enabled the movement of people between two countries despite the challenges posed by Covid-19.

The Agreement will take India-UAE economic and commercial engagement to the next level. UAE is India’s third largest trade partner, and bilateral trade and investment ties are expected to see significant enhancements. In all, the UAE’s warm relations with India send a strong message to the detractors of communal harmony be it in India or abroad. The soaring trade between the two is icing on the cake.