India-UAE inks free trade agreement (FTA) to raise bilateral trade to $100 billion in 5 years
- Prime Minister Shri Narendra Modi and Crown Prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan held a Virtual Summit on February 18, 2022, with the aim to further strengthen the bilateral relations in all sectors.
- Key highlights of the summit are as follows:
- Comprehensive Economic Partnership Agreement (CEPA): This was signed between Minister of Commerce and Industry Shri Piyush Goyal and Minister of Economy of UAE, H.E. Abdulla bin Touq Al Marri.
- The CEPA, is a free trade agreement (FTA) between the two countries to increase the bilateral trade from the current USD 60 billion to USD 100 billion in the next 5 years.
- This CEPA is India’s first bilateral trade agreement in the MENA (Middle East and North Africa) region.
- Joint Vision Statement: The two leaders issued a Joint Vision Statement titled “Advancing the India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone”.
- This Statement is a roadmap for a future-oriented partnership between India and UAE. In this, the focus areas and outcomes have been identified to promote new trade, investment and innovation dynamic in diverse sectors, including economy, energy, climate action, emerging technologies, skills and education, food security, healthcare and defence and security.
- MoUs: India and UAE have agreed upon following four MoUs during the Summit
- Food Security Corridor Initiative – MoU signed between APEDA and DP World & Al Dahra
- Cooperation in financial projects and services – MoU signed between India’s Gift City and Abu Dhabi Global Market
- Cooperation in Climate Action
- Cooperation in Education – Indian Institute of Technology (IIT) to be opened in the UAE
- Joint Commemorative Stamp: The leaders of the two countries, released the stamp to commemorate 75th anniversary of India’s independence and 50th year of UAE’s foundation.
Points to Remember:
- Comprehensive Economic Partnership Agreement (CEPA) between India and UAE aims to increase bilateral trade to _________ in 5 years
- India-UAE CEPA aims to increase bilateral trade to USD 100 billion in how many years? 5 years
- What is the current trade value between India and UAE? USD 60 billion
- UAE is the third-largest trade partner of India globally, after the United States and China.
- The bilateral trade between India and UAE stood at $43.3 billion as of 2020-21.