UAE’s minister of economy writes: UAE-India CEPA promoted a favourable environment for startups to thrive in both countries

Source– The post is based on the article “UAE’s minister of economy writes: UAE-India CEPA promoted a favourable environment for startups to thrive in both countries” published in “The Indian Express” on 5th May 2023.

Syllabus: GS2- Bilateral groupings and agreements

Relevance– India and UAE bilateral relationship

News– The article explains the evolving partnership between India and UAE.

What are some important facts about the bilateral relationship between India and UAE?

The relationship is shaped by years old cultural and economic engagement through the Indian Ocean’s network of exchange.

India-UAE relationship is today more than an economic partnership. It shows the deep, fraternal, and strategically important relationship between two countries.

The India-UAE partnership was based on the trade of traditional items. It was strengthened with oil. It found a formal dimension after the creation of the UAE Federation in 1971.

The relationship accelerated in the 1990s after liberalisation. India started exporting to the UAE and markets beyond. Today UAE is India’s third-largest trade partner.

How is the Comprehensive Economic Partnership Agreement (CEPA) beneficial for the two countries?

It has generated greater trade volumes and improved mutual access to markets. It has generated a wide range of economic, industrial and investment opportunities.

The UAE-India CEPA has been an incredible success. The volume of non–oil trade reached the $50 billion mark in 2022, with growth of about 10%.

It has generated multiplier effects. It is covering the widest possible range of subjects from digital economy to free trade, among other mutual priorities. It has served as a powerful platform for unprecedented partnerships and multi-sectoral collaboration.

The UAE-India CEPA is unleashing the spirit of entrepreneurship, inspiring innovators and investors. It is encouraging SMEs, startups to make inroads into new markets.

The UAE-India CEPA is also a strategic catalyst in addressing vital developmental challenges. It can tackle issues such as energy and food security, agriculture, and sustainability,

It adds greater importance to the presence of India and the UAE in regional blocs and multi-laterals such as the I2U2 and UFI.

What is the potential of India and UAE relationship?

The UAE looks forward to the opening of the IIT-Delhi campus in Abu Dhabi next year. Positive outcomes are expected from the MoU in academic cooperation signed between Anwar Gargash Diplomatic Academy (AGDA) and O P Jindal Global University.

In September last year, the UAE and India signed an MoU to establish the Emirati India Cultural Council.

More recently, thAbu Dhabi unveiled its first exhibition of the year — ‘Bollywood Superstars: A Short Story of Indian Cinema’. This deepening of India-UAE exchange of arts, culture and education indicates mutual trust and shared values.

The UAE-India CEPA and our strong people-to-people relations have created a highly favourable business environment.

It is an opportune moment for India’s dynamic startup ecosystem, its unicorns and innovators, to explore growth and diversification into the Emirati market, and from there to the Middle East, Africa, and Europe.