India – UAE Relations

Context:

  • India and the United Arab Emirates (UAE) signed a bilateral “comprehensive” trade pact on Friday.

About:

  • Announcing the Comprehensive Economic Partnership Agreement (CEPA), the biggest trade pact of the last seven years, Prime Minister Narendra Modi welcomed investment from the Gulf country into Jammu and Kashmir and said the initiative would open new routes for regional trade and connectivity and advance “collective interests” of India, Israel, the UAE and the U.S.
  • Commerce and Industry Minister Piyush Goyal said the CEPA would have strong anti-dumping measures. “This agreement will herald a new age in our financial relations. Our trade in the next five years will increase from $60 billion to $100 billion,” said Mr. Modi, thanking the Crown Prince of Abu Dhabi, Sheikh Mohamed bin Zayed Al Nahyan, who participated in the summit virtually.

India-UAE Economic Relations:

  • The UAE is currently India’s third-largest trading partner with bilateral trade in 2019/2020 valued at USD 59 billion.
  • The UAE is also India’s second-largest export destination after the US, with exports valued at approximately USD 29 billion in 2019-2020.
  • The UAE is the eighth-largest investor in India, having invested USD 11 billion between April 2000 and March 2021, while investment by Indian companies in the UAE is estimated to be over USD 85 billion.
  • Major Exports: Petroleum products, precious metals, stones, gems and jewellery, minerals etc.
  • Major Imports: Petroleum and petroleum products, precious metals, stones, gems and jewellery, minerals etc.

Source: THE HINDU.

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