India-UAE CEPA: Celebrating Three Years of Strengthened Economic Partnership

February 18, 2025 marks the third anniversary of the India-United Arab Emirates (UAE) Comprehensive Economic Partnership Agreement (CEPA), a landmark trade agreement that has significantly boosted bilateral economic ties. Signed during a virtual summit on February 18, 2022, between Indian Prime Minister Shri Narendra Modi and UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, the agreement came into force on May 1, 2022.

CEPA’s Impact on Bilateral Trade

Since its implementation, CEPA has led to a remarkable expansion in trade, with bilateral merchandise trade nearly doubling from USD 43.3 billion in FY 2020-21 to USD 83.7 billion in FY 2023-24. As of January 2025, trade volume had already touched USD 80.5 billion, underscoring the rapid growth trajectory.

One of CEPA’s key objectives—diversification of trade—has also been realized, with non-oil trade reaching USD 57.8 billion in FY 2023-24, accounting for more than half of total trade. This progress aligns with the ambitious goal of achieving USD 100 billion in bilateral non-oil trade by 2030.

The agreement has also facilitated preferential trade benefits, with over 2,40,000 Certificates of Origin issued since CEPA’s enforcement, leading to exports worth USD 19.87 billion to the UAE under preferential duties.

India’s Export Growth and Key Sectors Benefitting from CEPA

India’s non-oil exports to the UAE have surged to USD 27.4 billion in FY 2023-24, reflecting an average annual growth of 25.6% since CEPA’s inception. Several key sectors have benefitted from this agreement, including:

• Gems & Jewellery and refined crude oil products, maintaining their traditional stronghold.
• Electrical machinery & equipment, boilers, generators, and reactors, along with organic & inorganic chemicals, witnessing robust growth.
• Smartphones, emerging as a major export category, with shipments worth USD 2.57 billion to the UAE in FY 2023-24.

Strengthening Economic Cooperation & Overcoming Challenges

Both India and the UAE have actively addressed trade-related challenges through high-level Joint Committee meetings and technical discussions. The CEPA Joint Committee, tasked with overseeing the agreement’s implementation, has convened twice at the Joint/Additional Secretary level, with the most recent meeting held in October 2024.

Furthermore, the Trade in Goods Committee has engaged in multiple discussions to resolve trade concerns, while dedicated sub-committees have been established to facilitate smoother transactions in trade in services, rules of origin, customs procedures, and trade facilitation.

A significant milestone in CEPA’s implementation has been the launch of Bharat Mart in Dubai, inaugurated by Prime Minister Modi. This initiative serves as a one-stop marketplace for Indian manufacturers, enabling them to showcase their products to global buyers and expand their footprint in international markets.

CEPA: A New Era of Economic Diplomacy

The India-UAE CEPA has ushered in a new phase of economic cooperation, fostering deeper bilateral trade, investment, and strategic collaboration. It has played a pivotal role in:
✔ Empowering MSMEs through better market access.
✔ Generating employment by boosting trade and investment flows.
✔ Creating new business opportunities for Indian and UAE enterprises.

As both nations continue to strengthen their economic ties, CEPA remains a cornerstone of India-UAE relations, offering a roadmap for enhanced trade, investment, and innovation-led growth. With a shared commitment to expanding economic opportunities, India and the UAE are poised to achieve new milestones in their partnership, leveraging CEPA to unlock greater potential in global trade.