Abu Dhabi and India have witnessed significant growth in their bilateral relations in recent years, driven by deep-rooted ties, cultural exchanges, trade, and political engagement spanning decades. The proactive approach of the UAE in bolstering economic ties and forming trade alliances with key markets has played a crucial role in this growth. In line with this strategy, the Comprehensive Economic Partnership Agreements (CEPA) program was launched, including the CEPA with India, highlighting the swift progress in their relations. The UAE-India CEPA, which came into effect in May 2022, has been a turning point, benefiting Emirati businesses with reduced tariffs on exported goods and enhanced market access for service providers.
The CEPA aims to facilitate trade between the two countries by eliminating technical barriers and offering UAE businesses access to Indian government procurement opportunities. The establishment of a Joint Committee under the CEPA has further strengthened the partnership, allowing for the assessment, revision, and proposed amendments to enhance market access. The 14th Session of the UAE-India Joint Committee Meeting marked another significant milestone, with the signing of key memoranda of understanding, including collaboration in wildlife conservation and the establishment of the UAE-India Cultural Council Forum.
Additionally, the UAE, France, and India have announced a trilateral cooperation initiative, emphasizing their commitment to various fields such as energy and combating climate change. The partnership between the UAE and India in renewable energy aims to increase the use of clean energy sources, develop green hydrogen, establish carbon markets, and support sustainable finance.
Efforts to enhance economic and trade relations continue with discussions on increasing and diversifying mutual investments, exploring new sectors, and boosting the development and outreach of startups. The Confederation of Indian Industry (CII) conference in New Delhi served as a platform to announce collaborations and foster communication between business communities.
With the CEPA in place, the UAE and India have set a target of $100 billion in non-oil trade by 2030. The agreement has already had a positive effect, with non-oil trade between the two countries reaching $45.5 billion in the first 11 months after its implementation. The first anniversary of the CEPA signing saw the operationalization of established committees and the launch of new sub-committees to ensure effective monitoring.
Overall, the bilateral relations between the UAE and India have witnessed remarkable growth, driven by economic partnerships, cultural exchanges, and shared goals in various sectors. The CEPA has played a pivotal role in further strengthening this multifaceted partnership and opening new avenues for collaboration.
