The India-UAE CEPA: A Progressive Step


Inked on February 18, 2022, the Comprehensive Economic Partnership Agreement (CEPA) between the United Arab Emirates (UAE) and India is a massive leap forward in the bilateral trade relations between the nations. The agreement is set to usher in a plethora of benefits for both the signatories.  

What is The India-UAE CEPA?  

The India-UAE CEPA is a bilateral free trade agreement between the nations that came into effect on May 1st, 2022. The CEPA has been envisaged as raising the total bilateral trade between the nations from $60 billion to $100 billion (for goods) and $15 billion (for services) over a five-year period.  

With the CEPA coming into effect, there is set to be growth in the total value of bilateral trade as well as benefits in terms of technology exchange, movement of natural persons, government procurement, dispute redressal, and digital procurement, to name a few.  

In addition to advantages on the economic front, the India-UAE CEPA is set to drive improvement in access to education, environmental protection measures, cultural exchange, etc. The landmark trade agreement has been projected to generate jobs in excess of 1 million across various sectors, for instance, agriculture, jewelry, and pharmaceuticals. 

The Benefits of the CEPA for the UAE 

The CEPA between the UAE and India is set to usher in the following significant benefits for the former.  

1. Greater access to the Indian Market: The CEPA will provide more than 100 sub-sectors in the UAE access to the Indian market vis-a-vis the trade of goods and services. The UAE is set to gain preferential access on more than 90% of India’s tariff lines, particularly those related to exports.  

2. Enhancement of Food Security: The agreement is a pivotal measure to address the UAE’s issues pertaining to food security. Through the establishment of a ‘Food Security Corridor Initiative’, there will be a comprehensive partnership and strategic procurement to improve the country’s logistical network for food.  

3. Collaboration in the Education Sector: The CEPA also has provisions for collaborations between nations in the education sector. One of the cornerstones of this collaboration shall be the establishment of a first-of-its-kind Indian Institute of Technology on foreign soil – in the UAE.  

4. Strategic Partnerships in Technology Sharing: The India-UAE CEPA has also been envisaged as a harbinger of an increased sharing of technological know-how and infrastructure between the signatory nations.  

Choose a Consummate Player to Optimize your Procurement Process 

The India-UAE CEPA is a significant step forward in the bilateral trade ties of the nations. And manufacturers and exporters in the UAE and India alike can benefit from access to a bigger and more diversified market, profitable strategic partnerships, and sharing of tech initiatives and innovations. A future focused organization like Moglix with its tech led B2B supply chain ecosystem can play a pivotal role in welcoming CEPA to the next phase of growth. To know more about how Moglix can augment and optimize the procurement process, click here.



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