India-UAE Bilateral Trade hits $84.84 Billion In FY23 Due to CEPA

The inaugural meeting of the Joint Committee (JC) of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) was held successfully by India and the UAE. According to Union Minister of Commerce and Industry and Textiles Piyush Goyal, the deal has already delivered early benefits, with bilateral trade growth of roughly 16.5 percent, reaching an all-time high of around $84.84 billion for the fiscal year 2022-23 (FY23).

During the JC, both sides examined bilateral trade under CEPA, agreed to activate the agreement's existing committees, subcommittees, and technical council, and agreed to a quarterly mutual exchange of preferential trade data for effective monitoring. The two countries reviewed various areas of the agreement's execution and agreed to address any roadblocks.

The meeting also saw exchanges on World Trade Organization (WTO) matters, with the 13th Ministerial Conference of the WTO set to take place in Abu Dhabi in late February 2024.

A high-level delegation from the UAE, led by Thani bin Ahmed Al Zeyoudi, minister of state for foreign trade of the UAE, visited India on June 11-12, 2023. The meeting concluded with the signing of the agreed minutes of the first JC meeting of the India-UAE CEPA in the presence of both ministers.

The ministers also set a non-petroleum products trade target of $100 billion by 2030, up from the current $48 billion. They also participated in a B2B event organised by the Department of Commerce in association with the Confederation of Indian Industry (CII). At the event, Goyal stressed that the agreement has significantly transformed the India-UAE partnership, giving it fresh momentum. He reported a remarkable 12 per cent growth in India’s exports to the UAE, reaching $31.6 billion in 2022-2023.

According to the announcement, both ministers addressed ideas such as virtual trade lanes, the probable establishment of Abu Dhabi Investment Authority offices in GIFT City, Gujarat, UPI collaboration, and the development of a direct rupee-dirham commerce system.

Zeyoudi reaffirmed the UAE Government's desire to improve bilateral relations by engaging in mutually beneficial activities.

The B2B event drew a large number of participants from the Indian and UAE business communities, as well as prominent authorities from both countries.