India and the United Arab Emirates (UAE) on Friday signed a bilateral “comprehensive” trade agreement. Announcing the Comprehensive Economic Partnership Agreement (CEPA), the largest trade agreement in the last seven years, Prime Minister Narendra Modi welcomed investments in Jammu and Kashmir from the Gulf country and said the initiative would create new opportunities for regional trade and connectivity. The roads will open and move on. Collective interests of India, Israel, the United Arab Emirates and the United States of America”. Commerce and Industry Minister Piyush Goyal said that CEPA will have strong anti-dumping measures.
“This agreement will usher in a new era in our financial relationship. Our trade will grow from $60 billion to $100 billion in the next five years,” Mr Modi thanked Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, who attended the summit virtually.
collective goal
“Both of our countries are working with like-minded partners. I am confident that the ‘India-UAE-Israel-USA’ grouping will further our collective goals, particularly in the areas of technology, innovation and finance,” Mr. Modi said while announcing the broad contours of the trade deal. Strongly condemn the terrorist attack on UAE on January 17 in which two Indian nationals lost their lives. The Prime Minister assured, “We will stand shoulder to shoulder with UAE in the fight against terrorism. ”
During the virtual summit meeting, a Memorandum of Understanding (MoU) was signed between the International Financial Services Centers Authority (IFSCA), GIFT City and the Abu Dhabi Global Markets Financial Services Regulatory Authority (FSRA). Another MoU involves the building of food corridors. “The MoU on food corridors is a very good initiative. We welcome investments from UAE in the food processing and logistics sectors,” Mr Modi said. Informed sources said the deal would cover 90% of India’s exports to the UAE. Indian exports are expected to benefit from “zero duty from the first day of entry into force of the agreement”.
Negotiation of more than 88 days
The agreement is the first of several deals that India is currently negotiating with several countries across the world as part of its “post-pandemic recovery”. The Indian side said that some trade agreements will be interim in nature due to the complexities involved, but the talks with the UAE over 88 days have been designed keeping in mind the longer-term objectives. “It is a complete and comprehensive agreement completed in the shortest possible time,” said Mr. Goyal, summarizing some of the salient features of the agreement. The minister said that plastics, agri-food products, automobiles, engineering, pharmaceuticals are some of the sectors that will get a boost due to the agreement.
Mr Goyal said that as part of a friendly gesture, the UAE had agreed to recognize Indian pharma products within three months after they were recognized by advanced economies of the West through a “rigorous” process . He presented the deal as a move that would have “far-reaching implications for the global economy” and provide economic opportunities.
Mr. Goyal said, “This deal will open 10 lakh jobs for the youth in the country.” Official sources said the agreement will open access for India to wider African and Asian markets. He argued that labour-intensive industries such as gems and jewellery, leather, furniture, wood products, agriculture, medical equipment, pharma and automobiles would see a “substantial net profit for India”. Sources said the agreement will help increase trade on commodities to $100 billion in five years.
“Last month the Lieutenant Governor of Jammu and Kashmir made a successful visit to the United Arab Emirates. After that many Emirati companies have shown interest in investing in J&K. We welcome UAE investments in logistics, healthcare, hospitality and all other sectors of J&K,” Mr Modi said.
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