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On February 18, 2022, India signed the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) that will facilitate the free flow of goods, services, capital, technology, and people. It has the potential to promote momentum across the economy, resulting in hundreds of thousands of jobs created in both countries.

India signed the Comprehensive Economic Partnership Agreement (CEPA) with the United Arab Emirates (UAE) on February 18 which will benefit about 90 per ki kocent of trade - both exports and exports - between the two countries.

India-UAE CEPA is the first complete trade agreement signed by the BJP government since taking office in 2014. As free trade agreements and regional trading areas grow around the world, India has always felt the need to enter into such arrangements with suitable trade partners so as not to lose special access to the key markets that competitors benefit from.

CEPA has the potential to promote momentum across the economy, resulting in hundreds of thousands of jobs created in both countries. In five years, trade in the two countries is expected to grow by $100 Bn in goods and $15 Bn in services. This initial agreement will facilitate the free movement of goods, services, money, technology, and people, and beneficial partnerships.

The following brief areas are defined equally in this Comprehensive Agreement on Economic Co-operation between the two countries-

Economic Partnerships:

The UAE and India have expressed confidence that the agreement will strengthen economic ties and open up new opportunities for trade and investment. Leaders also encourage Indian investors to set up state-of-the-art industrial facilities in the Abu Dhabi Emirate, including chains of existing and new specialised economic sectors in transport and services, medicine, medical equipment, agriculture, agri-tech, steel and aluminium.

Cultural Partnerships:

India and UAE have agreed to establish an Indian-UAE Cultural Council to promote cultural cooperation between the two countries. The program will be coordinated by the UAE Office of Foreign Affairs and International Cooperation for Social and Cultural Diplomacy, and the Indian Council for Cultural Relations.

Power partnership:

The UAE and India are committed to working together for justice again

a paradigm shift towards a low-carbon future as they roam the earth's crust. Both countries have promoted and brought significant investment opportunities through comprehensive strategic partnerships.

Climate and Renewable Action:

Leaders in India and UAE have agreed to increase cooperation to speed up climate action, with a particular focus on Green Hydrogen production. Leaders commended the UAE's continued investment in India's clean technology programs and called for a strong partnership between business and business (B-B) and private companies (PPPs).

Emerging Technologies:

The UAE and India have agreed to increase key technological cooperation as well as to promote e-business and e-payment solutions. These leaders have asked their officials to look at ways and sectors that will promote the same.

Skills Collaboration:

Both India and the UAE recognize the importance of skill development in increasing labour productivity and the number of skilled workers from India in the various economic sectors of the UAE.

Food Security:

Recognizing India and the long-standing UAE relationship in the food security sector, as well as the need to improve the resilience and reliability of food supply chains, as evidenced by the covid-19 epidemic, leaders agreed for growth in food and agricultural trade and responsible foreign investment in agriculture and food systems.

Health Partnerships:

India and the UAE have agreed to increase UAE investment in India's rapidly growing health infrastructure. The leaders also agreed to work together to provide health care to people living in poorer countries. They also appreciated the contributions of India and the UAE in providing international policy.

Education Partnerships:

Leaders agreed to establish an Indian Institute of Technology in the United Arab Emirates, reaffirming the historical ties between the two countries and recognizing the need to establish world-class institutions that promote and support innovation and technological advancement.

Collaboration at the International Arena:

Leaders have agreed to increase support in multilateral areas to promote cooperation in the economic and infrastructure sectors, highlight shared values ​​and principles and increase strategic integration.

Security & Protection:

Leaders have emphasised the importance of maintaining peace in the Middle East. They expressed their hope that the Abrahamic Covenant would help bring about regional peace and positive change in the region. The leaders agreed to strengthen bilateral cooperation in the fight against terrorism, terrorist financing and extremism.

Areas that will benefit from this agreement:

Indian exporters are likely to make significant gains in labour-intensive sectors such as jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, pharmaceuticals and medical equipment and vehicles. In fact, CEPA is likely to increase competition for Indian products, costing around $26 billion, currently less than 5% of import duty outside the UAE.

Key features of this partnership:

India-UAE CEPA encompasses obligations in commodities, trade in services, trade barriers, dispute resolution, telecom, tax processes and pharmacy.


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