ALBAWABA — The India-United Arab Emirates Comprehensive Economic Partnership Agreement is leading to ‘deeper border integration’ in global value chains and could top $100 billion, said Piyush Goyal, India’s Minister of Commerce and Industry, Consumer Affairs, Food, Public Distribution and Textiles, speaking at the India-U.A.E. Partnership Summit on Monday in Dubai.
According to a Dubai Media Office statement, the International Business Linkage Forum together with the Dubai Chamber of Commerce and Industry are hosting the three-day summit in efforts to promote and boost business relations between the two nations.
At $25.45 billion, the U.A.E. was the second top export market for India in 2021-22 fiscal year after the United States with $71.51 billion while China stood third with $23.04 billion, according to the United Nations COMTRADE database on international trade.
“Food security is an area of high priority and interest to both countries,” said Goyal.
The CEPA, which came into effect May 1, 2022, lowered import duties across many sectors, is allowing food and agricultural product exports from India to the U.A.E. to complement agreements on the food security corridor, while strengthening the infrastructure and creating dedicated logistics services.
“It will then become a key part of the global food value chain catering to markets beyond the United Arab Emirates,” Gloyal said.
According to the minister, the gems and jewelry sector is one of the top-rated categories and among the sectors that have gained the most since the implementation of the CEPA.
Goyal said in order to cement India’s position as a global trading hub for gold and diamonds the Gem and Jewelry Export Promotion Council has set up an Indian Jewelry Exposition Centre in Dubai.
“The IJEX acts as a one-stop destination for the world to source Indian jewelry in Dubai, again, a win-win situation,” he added.
According to industry sources, India’s gem and jewelry exports in FY2022-23 grew by 8.26 percent.
“I'm sure we'll be able to surpass relatively modest targets to induce the bilateral merchandise trade to $100 billion,” the minister said, about twice the pre-pandemic trade flows between the countries.
India hopes to see its exports top $1 trillion by 2030, and the growing bilateral trade with U.A.E. plays an integral role, according to the minister.
“The destinies of the U.A.E. and India have been inextricably intertwined for centuries,” said Goyal. “A closer collaboration and current friendship, trust, and the spirit of entrepreneurship will create limitless opportunities for our economies, for our industries, our cities and our people now and for generations to come.”
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