The United Arab Emirates and India have significant bilateral relationships based on long-standing religious, cultural, and economic ties. Under the leadership of the UAE and India’s Prime Minister, Narendra Modi, ties are reaching new heights. The groundwork for a more powerful and promising cooperation between India and the UAE has been built by mutually strengthening economic aspirations and attuned geopolitical outlooks. The landmark CEPA (Comprehensive Economic Partnership Agreement) between the UAE and India is a forerunner to future economic collaboration between the two countries and a huge boost to bilateral relations. One of CEPA’s main goals is to increase bilateral non-oil merchandise trade to USD 100 billion in the next five years.
The CEPA will make bilateral investments in labor-intensive industries such as textiles, gems and jewelry, leather goods, and food processing easier. Similar commercial deals between India and other GCC (Gulf Cooperation Council) countries will be made easier as a result of the accord. Furthermore, under CEPA, about 90% of export products and 80% of trade lines between India and the UAE will be duty-free. Over the next 5-10 years, India’s zero-duty access to the UAE is predicted to increase to 97 percent of UAE tariff lines or 99 percent of Indian exports by value.