India and the United Arab Emirates (UAE) signed a Comprehensive Economic Partnership Agreement (CEPA) that is set to benefit almost 90 per cent of trade -- both exports and imports-- between the two countries. The trade deal has also provided a permanent safeguard mechanism, which will safeguard exporters and businesses from both countries from any unwarranted surge in volumes of any particular product.

More about trade deal

  1. Several sectors, such as gems and jewellery, leather, plastic products, agriculture products, medical devices, pharmaceutical products, and automobiles will benefit from the agreement.
  2. India has given duty concessions on gold exported from the UAE, while Indian exporters will attract zero per cent duty on jewellery.
  3. The trade pact will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs.
  4. It is expected that the CEPA will lead to an increase in bilateral trade from the current $60 billion to $100 billion in the next five years.
  5. On the pharma side, the UAE for the first time has agreed that medicine or medical products approved by developed countries will get market access and regulatory approval in a time-bound manner of 90 days for being marketed in the UAE.
  6. The India-UAE CEPA will be the first of the bunch of trade agreements that India aims to ink with other developed nations over the next few months.
  7. The UAE is currently India’s third-largest trading partner and the second-largest export destination, after the US.
  8. The two leaders also released a Joint Commemorative Stamp on the occasion of the 75th anniversary of India's independence and the 50th year of UAE's foundation.