Indian exports to UAE to reach US$ 50 bn

The two countries signed a trade agreement on May 1, 2022, called the Comprehensive Economic Partnership Agreement (CEPA)

May 2, 2023

Currently, Indian exports to UAE stand at US$ 31.3 billion

In FY23, India's exports to the UAE increased by 11.8%, and imports by 18.8%

In the first year of the CEPA implementation, 54,144 certificates of origin were issued

India's exports of essential oils, automobiles, mineral oils, electrical equipment, cereals, perfumery, and cosmetic preparations were the biggest beneficiaries of the pact

India’s exports to the UAE are expected to increase from US$ 31.3 billion in 2022-23 to US$ 50 billion by 2026-27, according to Commerce Secretary, Sunil Barthwal. 

In FY23, India’s exports to the UAE increased by 11.8% to US$ 31.3 billion, while imports rose by 18.8% to US$ 53.2 billion. Non-oil imports grew by 4.1% in FY23. However, iron and steel exports fell by 36% YoY in FY23.

The two countries signed a trade agreement on May 1, 2022, and India has utilized the agreement second most among all of its free trade agreements (FTA). In the first year of the CEPA implementation, which ended in March 2023, 54,144 certificates of origin were issued, the second highest among all of India’s free trade agreements, following the India-Asean FTA, which had 1.49 lakh certificates of origin issued.

India’s exports of essential oils, automobiles, mineral oils, electrical equipment, cereals, perfumery, and cosmetic preparations were the biggest beneficiaries of the pact, while imports of aircraft, spacecraft, and parts grew by 4,859% YoY to US$ 1.93 billion in FY23. Experts stated that the increase was part of the normal most-favoured-nation tariffs and that the UAE is a transit hub.

Due to the non-utilization of the full quota of tariffs available under the CEPA, gold imports declined in FY23. However, India recently announced that it would open a fresh window for importing 140 MT of gold in FY24 at concessional duty from the UAE through an import quota system.

Source: Economic Times

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