India-United Arab Emirates free trade agreement (FTA)<\/a> is just over a month to go to come into force. India and the UAE in February signed the Comprehensive Economic Partnership Agreement (CEPA)<\/a>.<\/p>\n Aim<\/strong>: a)<\/strong> To facilitate higher investment flows for both countries, b)<\/strong> To ensure mutually beneficial and guarantee a maximum advantage in trade for both countries.<\/p>\n Key provisions of the deal<\/strong>:<\/p>\n -The deal will initially give zero-duty access to 90% of Indian products, and 65% of products from the UAE.<\/p>\n -Over the next 10 years, 97% of Indian products will get zero-duty access to the UAE market and 90% of products from the UAE will have duty-free access to the Indian market,<\/p>\n -Service exports are a major component of the deal. There are 11 sectors and more than 100 sub-sectors covered in total. These include business services, telecommunication, construction and related activities, education, healthcare, environment, finance and insurance, and tourism, travel and transport services.<\/p>\n -The CEPA enables companies in both countries to access government procurement.<\/p>\n – In terms of the movement of people who are seeking to provide services under the CEPA, this deal will offer a smoother process from both sides.<\/p>\n Ever since the pandemic, all sectors critical to the UAE such as supply chains, logistics, aviation, travel and tourism has been hit.<\/p>\n Through CEPA, the UAE businesses will now have improved access to the world\u2019s fifth-largest economy, favourable tariffs in key export sectors including aluminium, copper, steel, and polymers, and greater market access for India’s services sector. According to Indian models, this deal will add $9 billion to UAE\u2019s gross domestic product (GDP) by 2030.<\/p>\n -The deal was negotiated in a record 88 days. Further, This is the first FTA finalized by the Indian government since 2014.<\/p>\n -The trade deal kept the door open for India to conclude a larger pact with the six-member Gulf Cooperation Council (GCC)<\/a>.<\/p>\nAbout the India-United Arab Emirates CEPA<\/h5>\n
What is the significance of this deal for the UAE?<\/h5>\n
What are the other key highlights of the deal?<\/h5>\n