UAE & India share a long economic relationship and cultural ties. Later when the UAE-India Bilateral Trade relationship increased between these two nations, it opened a huge amount of opportunities for foreign investors and business owners who wanted to do a business setup in the Emirates.
In 2022 the trade relationship intensified by signing a Comprehensive Economic Partnership Agreement (CEPA). This agreement was initially signed on 18th February 2022 and came into force on 1st May 2022.
Important Note: No other GCC nations are part of this agreement.
Aim of the CEPA under the India-UAE Bilateral Trade
This CEPA was signed to boost bilateral trade between the two countries (UAE & India). The aim is to boost trade from 66 billion to 100 billion in the next five years, as a business setup in Dubai has now become more feasible.
Key Products That Will Get Immediate Benefit
The key products that will get immediate benefits are listed below;
- Oil & Gas
- Petrochemicals
- Mineral
- Textiles
- Agriculture
- Jewellery
- Gems
- Metal
Benefits of the CEPA for UAE and India
Below listed are the benefits of CEPA;
- 0% customs duties in the first year
- Duty rates are to be reduced for
- For Monetary gold reduced by 1%
- For Bananas, reduced by 15 %
- For low-density Polyethylene reduced by 50%
- Also, customs duties on copper wires, silver, clad with gold, plates, and iron or non-alloy sheets are reduced
Together CEPA aims to reduce almost 10,000 tariffs in 10 years. This will be a huge impact on the trade between UAE and India.
Guidelines to be Followed by Both the Countries
With the perks, this agreement also has a few guidelines to be followed, as listed below;
- The product which is exported should be wholly manufactured in that territory
- Should undergo sufficient quality checks
- Efficient custom clearance and cross-border clearance
- Should create a non-discriminatory environment across borders
- Should offer access to broader market sectors such as construction, telecommunication, and educational services
- Fast-track approvals for pharmaceutical products. Manufacturing
- Information should be exchanged properly between the two nations' tax authorities
- Grant permission for specific production during international fairs, exhibitions, or any sports purpose)
- Promotion of trade opportunities for small and medium-sized businesses
- Both nations should be transparent regarding government protocols
End Note - Choose Us for Your Business Setup in UAE
The CEPA, or the bilateral trade & investment opportunities between UAE and India, has strengthened the trade relationship between both nations.
The most important news for business owners is now, due to this agreement, UAE is providing fast-track visa services for any person or company who wishes to do business setup in UAE.
For more details, contact us. Our experts in Commitbiz can give you better in-depth information about the bilateral trade & investment between UAE and India.