The Indian Business and Professional Council Dubai in Coordination with the Consulate General of India hosted a celebratory event marking the second anniversary of the Comprehensive Economic Partnership Agreement (CEPA) between India and the United Arab Emirates (UAE). The gathering, held in Dubai on September 6, showcased the remarkable progress in bilateral trade and investment since the agreement’s implementation.
Speaking on the occasion, the Deputy Consul General of India Yatin Patel commented “The dynamic trade relationship has contributed to stronger and more diversified supply chains. Trade, which was once concentrated in the energy sector, has now spread across various other sectors, strengthening our supply chains. Additionally, the transfer of technology has been facilitated, thanks to increased business interactions, and we’ve seen advancements in skill development. The emergence of new sectors has also led to further trade facilitation and talent growth.”
The CEPA has emerged as a cornerstone of economic cooperation between the two nations, impacting numerous sectors and over 100 subsectors. Since its inception, the agreement has catalyzed a surge in bilateral trade, solidifying each country’s position as a key trading partner for the other.
Ahmed Aljeibi, Director of the UAE-India CEPA Council, presented compelling statistics highlighting the agreement’s success. “Over the past two years, total trade has increased by nearly 15%, with the UAE’s exports rising by over 7%, and Indian exports to the UAE growing by an impressive 27%,” Aljeibi reported. He emphasized that CEPA has proven to be one of the most significant free trade agreements signed by India, underscoring the complementary nature of the two economies.
A notable shift in the post-CEPA era is the diversification of the trade basket. “We are moving away from a heavy reliance on hydrocarbons,” Aljeibi explained. “Non-oil trade between the UAE and India registered a 20% increase during the 2023-2024 financial year, highlighting the transformative potential of CEPA.”
The agreement has also spurred significant investments. French-based investment firm Christensway committed $525 million to Tata Power Renewables in India, while DP World signed a Memorandum of Understanding with Gujarat to invest $3 billion in new ports and terminals. On the Indian side, there has been a notable rise in Indian companies registering in the UAE, reflecting growing interest and confidence in the UAE market.
The event featured a panel discussion on how CEPA has benefited India-UAE trade. Panelists included Marwan Abdulaziz, Senior Vice President of Dubai Science Park, Dubai Knowledge Park, and Dubai International Academic City; Rishi Chadha, Vice President & Head-MENA of Tata Consumer Products Ltd.; Aditya Singh, Head of Jewellery International Business at Titan; and Dr. Rajesh Agarwal, Executive Director of RMZ Group. Sreekumar Brahmanandan, Investment Director at Dubai Investments PJSC, moderated the discussion.The panelists delved into sector-specific impacts of CEPA, discussing how the agreement has facilitated technology transfers, enhanced skills development, and created new talent demands in emerging sectors. They also explored the agreement’s role in strengthening and diversifying supply chains beyond traditional sectors.
Secretary General of IBPC Dubai Sahitya Chaturvedi, emphasized the comprehensive nature of the agreement, stating, “The provisions in India-UAE CEPA incorporate economic, financial, and cultural connections between the two nations.” His remarks highlight the far-reaching impact of CEPA beyond mere trade statistics.
As CEPA enters its third year, both India and the UAE are looking to capitalize on its success. The CEPA Council, launched at the Vibrant Gujarat Summit in January, aims to ensure that businesses in both countries fully benefit from the agreement. Over the past nine months, the Council has engaged with over 500 businesses across seven Indian states, addressing challenges and further strengthening trade ties. India and UAE entered into the Comprehensive Economic Partnership Agreement from May 2022.
The success of the India-UAE CEPA serves as a model for international trade partnerships in the rapidly evolving global economy. As both nations continue to reap the benefits of this agreement, it paves the way for deeper economic integration and mutual prosperity, aligning with initiatives like “Visit Bharat” that seek to promote India on the global stage.
Vinod Kumar (UAE)
