A year after signing Comprehensive Economic Partnership Agreement (CEPA) with United Arab Emirates (UAE), India is likely to touch an all-time high in exports this year, Dr Srikar K Reddy, Joint Secretary, Ministry of Commerce said on Thursday.
Reddy said that the historical India-UAE CEPA is yielding results. “India-UAE CEPA has seen a significant positive impact on India’s exports. Indian exports to UAE are likely to touch USD 32 Bn in the financial year 2023. India-UAE CEPA will complete one year in May 2023. According to February trade data, India’s global exports have witnessed 10 per cent decline year on year from USD 37.15bn to USD 33.88bn. However, due to the significant positive impact of CEPA, India’s exports to UAE has seen a YoY increase of 4.9 per cent in February. India’s Global non-oil exports saw a YoY decline of 4.2 per cent in February but during the same period India’s non-oil exports to UAE have seen an increase of 18.9 per cent, “he said.
According to the trade data between June 2022 to February 2023 India’s global exports registered a growth of 1.49 per cent from USD 314.38 bn to USD 319.07bn. During the same period, India’s exports to UAE grew from USD 20.86 bn to USD 23.03 bn registering a growth of 10.4 per cent.
During June 22-Feb 23 India’s global non-oil exports saw a decline of 3.53 per cent, but during the same period, India’s non-oil exports to the UAE grew from USD 16.29 bn to USD 17.36 bn registering a growth of 6.5 per cent.
Reddy said that exports of Gems and Jewellery grew by 19 per cent, Electrical machinery and equipment by 28 per cent, Machinery and mechanical appliances by 22 per cent, Cereals by 38 per cent Automobiles by 33 per cent essentials oils and resinoids, perfumery, cosmetics or toilet preparations 70 per cent coffee, tea, mate and spices 37 per cent sugars and sugar confectionary 44 per cent articles of iron or steel 13 per cent, miscellaneous chemical products 30 per cent and edible oil and certain roots and tubers has seen a growth of 22 per cent.
Reddy said that the impressive overall growth in bilateral trade is a true reflection of the early gains accruing from the agreement.
India and UAE concluded a landmark Cepa in just 88 days. The CEPA entered into force in May 2022. CEPA has unleashed new opportunities in bilateral trade.
India-UAE CEPA is a wide-ranging agreement, covering all aspects of India’s economic engagement with the UAE including Trade, Investments, Healthcare, Digital Trade Government Procurement, IPR etc.