The UAE-India Comprehensive Economic Partnership Agreement (CEPA) has emerged as a resounding success story, solidifying the two nations’ long-standing economic ties and ushering in a new era of prosperity. It has been two years since CEPA was signed and became operational. This has significantly advanced trade, with bilateral exchanges increasing from USD 72.9 billion to USD 84.5 billion, registering a year-on-year increase of 16 percent.
Major Indian export sectors have seen substantial growth, with exports of Indian gems and jewellery to the UAE expanding by almost 64 percent in just two years. Other critical Indian export sectors, such as drugs and pharmaceuticals, and fruit and vegetable products, have also experienced considerable growth.
Celebrating two years of UAE-India CEPA, Dr Abdulnasser Alshaali, Ambassador of the UAE to India, said, “The UAE-India CEPA has emerged as a resounding success story, solidifying our nations’ long-standing economic ties and ushering in a new era of prosperity.”
“Over the past two years, we have witnessed remarkable growth in bilateral trade, a testament to the immense potential that exists when our complementary strengths are harnessed effectively. The CEPA has not only opened new avenues for businesses to benefit from the bilateral partnership, but has also fostered deeper integration of our economies, paving the way for increased investment flows and collaboration across diverse sectors,” Dr Abdulnasser Alshaali said.
Beyond direct trade, the CEPA has facilitated numerous investment benefits, fostering a deep sense of confidence and ambition within both the UAE and Indian business communities. Notable investments include the establishment of Bharat Mart in Dubai and significant investments by major UAE entities into the Indian economy. The Abu Dhabi Investment Fund’s commitment to establishing a USD 5 billion fund in collaboration with Gujarat’s GIFT City, Mubadala’s acquisition of an eight percent stake in Manipal Health, and Lulu Group’s strong expansion plans within India’s retail market firmly highlights the mutually beneficial impacts of the CEPA.
The establishment of the UAE-India CEPA Council further underscores the commitment of both nations to strengthen their economic partnership. Supported by the UAE and Indian governments, the CEPA Council aims to enhance investment and trade ties, cementing the dynamic economic relationship created by the CEPA.
The success of the UAE-India CEPA reflects the robust alliance between the two countries and the power of economic integration. As the UAE marks the two-year milestone of the CEPA, it reaffirms its commitment to deepening its partnership with India.