India’s non-oil exports to the UAE under the recently signed bilateral Comprehensive Economic Partnership Agreement (CEPA) has seen a rise of 14 percent to reach $5.92 billion during June –August this year from $5.17 billion in the same year-ago period, India’s commerce ministry said.
India’s global non-petroleum exports during the same period, however, grew by a paltry three percent on an annual basis, implying a five-time jump in the India-UAE non-petroleum exports.
The India-UAE CEPA came into effect on May 1 this year.
“The UAE-India CEPA is already creating a significant positive impact on bilateral trade,” said the findings of a comprehensive study of the bilateral pact since its implementation, released by the ministry.
The study predicted that Indian exports to the UAE will increase further in the coming months with the growing use of the CEPA by exporters.
“A series of trade promotion events in the UAE during the current financial year are planned,” the ministry said.
Although the CEPA went into force on May 1, the ministry said the first month of its implementation was not included in the study because it was considered a transition period. Hence the analysis is for three months, from June to August.
During the same period, India’s imports from the UAE grew from $5.56 billion to $5.61 billion. The trade increase in both directions is significant “in the context of global macro-economic headwinds, including policy tightening in advanced economies, global growth slowdown and a reduction in international merchandise trade”, the study said.
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