IGI Logo

Commerce and Industry Minister Piyush Goyal has said that the free trade agreement between India and the UAE is likely to come into effect from May 1, 2022, under which domestic exporters of as many as 6,090 goods from sectors like textiles, agriculture, dry fruits, gem and jewellery would get duty-free access to the UAE market.

Goyal said the Comprehensive Economic Partnership Agreement (CEPA) was signed by India and the United Arab Emirates (UAE) in February which aims to boost bilateral trade to $100 billion in the next five years from current $60 billion. He noted that overall, the UAE is offering duty elimination on over 97 per cent of its products which account for 99 per cent of Indian exports here in value terms. 

The minister said ‘currently, we are exporting about $26 billion worth of goods to the UAE, almost 90 per cent of them will get total tariff (or customs duty) elimination on Day 1 itself. Going forward in the next 5-7 or ten years, the rest of the 9.5 per cent (about 1,270 goods) will also get zero duty.’ He said the UAE also opened doors for the rest of the Middle East, some parts of Africa and Europe. This opens up huge opportunities for Indian businesses. The pact also opens doors to several service sectors which will expand job opportunities for Indian young boys and girls.