India – UAE CEPA
Part of: GS-Prelims and GS-II: India and its neighbourhood- relations
In News: Negotiations have been formally launched on the India-United Arab Emirates Comprehensive Economic Partnership Agreement (CEPA).
- Aimed at improving bilateral economic relations, including expanding the existing trade and investment relationship
- Will create new jobs, raise living standards, and provide wider social and economic opportunities in both nations.
- A new strategic economic agreement is expected to increase bilateral trade in goods to USD 100 billion within five years of the signed agreement and increase trade in services to USD 15 billion.
- To strengthen the rules-based, transparent, non-discriminatory, open, and inclusive multilateral trading system embodied by the World Trade Organization.
- Also agreed to work towards a balanced and inclusive outcome at the 12th WTO Ministerial Conference (MC12) in Geneva, Switzerland.
Relations between UAE & India
- India’s third-largest trading partner with bilateral trade in 2019/2020 valued at USD 59 billion
- India’s second-largest export destination after the US, with exports valued at approximately USD 29 billion in 2019-2020.
- 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.
- India was the UAE’s second-largest trading partner in 2019, with bilateral non-oil trade valued at USD 41 billion.
- India’s major exports to the UAE include petroleum products, precious metals, stones, gems and jewellery, minerals, food items such as cereals, sugar, fruits and vegetables, tea, meat, and seafood, textiles, engineering and machinery products, and chemicals.
- India’s top imports from the UAE include petroleum and petroleum products, precious metals, stones, gems and jewellery, minerals, chemicals and wood and wood products. India imported USD 10.9 billion of crude oil from the UAE in 2019-2020.
News Source: PIB