Date: January 14, 2025
The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has exceeded all expectations in its first year, with bilateral trade crossing $100 billion, making it one of the most successful trade agreements in recent history.
Impact on Businesses:
The agreement has particularly benefited small and medium enterprises (SMEs) on both sides:
- Tariffs reduced on over 1,100 products
- Processing time for trade documents cut by 50%
- New digital trade corridor launched for faster clearances
- Zero duties on jewelry, textiles, and agricultural products
Mumbai-based exporter Rajesh Sharma shared, “Our textile exports to Dubai have increased by 200% since CEPA. The simplified documentation and reduced tariffs have made us more competitive.”
Future Prospects:
Both nations are now working on Phase 2 of the agreement, which will include services trade, digital commerce, and green energy cooperation. The success has inspired other GCC countries to explore similar partnerships with India.
