A comprehensive trade agreement between India and the UAE will help create huge employment opportunities and boost the growth of the domestic economy, Commerce and Industry Minister Piyush Goyal said on Friday.
The bilateral agreement, formally known as the Comprehensive Economic Partnership Agreement (CEPA), is expected to increase bilateral trade in goods to USD 100 billion and trade in services to US 15 15 billion in five years.
It has been in effect since May 1.
The deal opens the door to many sectors, especially labor-intensive sectors such as textiles, gems and jewelry, pharmaceuticals and agriculture, Gayal told the media here during a briefing with UAE Economy Minister Abdullah bin Touk Al Marri.
The ministers launched the ‘India-UAE Start-up Bridge’ at the India-UAE Partnership Summit organized by industry body CII here.
Check out the tweets here:
India-UAE Economic Partnership Summit https://t.co/OjAYKRBSz6
– Piyush Goyal (PiyushGoyal) May 13, 2022
The India UAE Startup Bridge is part of the CEPA to strengthen collaboration between startups through the exchange of best practices and relationships between accelerators, incubators and other ecosystem stakeholders.
The bridge will serve as a one-stop platform where information on the Indian and UAE startup ecosystems will be easily accessible to entrepreneurs and stakeholders in both countries.
“Our exports, which are now about US 36 36 billion, which is about 2.5 trillion rupees, if we increase according to the plan, it will obviously add millions of jobs. Bilateral trade between the two sides is USD 250 billion.
“So my guess is that it will give a big boost to economic growth, jobs. And it opens up opportunities for the African region, not just in the UAE. The Indian economy, too,” Goel said.
He added that the agreement would not only open the door to Indian trade for the UAE but also a transit point for other countries, including the UAE, a large part of Africa, the CIS (Commonwealth of Independent States) and the Gulf region.
CIS countries include Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia and Tajikistan.
Further, Goyal said that Indian pharma products will have immediate access to the UAE market as CEPA has given way to quick-track approval for these products in the UAE.
He added, “This is the first time any country in the world has given such an advantage to India.”
“We believe that (bilateral) trade will grow to at least US 100 100 billion in the near future.
According to the minister, the framework is expected to add one million jobs in India and provide opportunities for the country’s startup ecosystem and has huge potential to be involved in skills development and education.
“We are looking at significant investment because the UAE has committed more than US 100 100 billion in investment in manufacturing, infrastructure, (and) services (s) in India, so the business will get a booster shot,” the minister said.
He said a large number of startups have been formed in the last six years, with more than 65,000 registered with the ministry.
India has more than 100 unicorns, including the world’s third largest startup ecosystem, he said.
The UAE minister said the deal would add 1.7 per cent GDP growth to their economy.
Noting that the CEPA provides significant economic benefits for both countries, he said: “The most important part of this agreement is that a lot of opportunities will be created. It will add 1.7 percent growth to the UAE economy and create 140,000 jobs.”
The UAE minister described the CEPA as “extremely agile and agile” and said there were sections that would allow for future discussions in areas such as the digital economy and digital commerce.
Also, the Minister said that for India-UAE CEPA, government procurement and intellectual property rights are of special importance.
He added that the agreement covers not only products and services but also services, adding that other opportunities could come.
“Now, we are looking at the growth that we want to reach – from USD 40 billion today, US 100 100 billion or more in the next decade … Our economic modeling shows that this is an opportunity for growth, it can actually reach that number. Al-Marri says.
“India and the UAE have great potential to work together and the Comprehensive Economic Partnership Agreement (CEPA) will open the door to global market dominance and help build a ready, stronger and more resilient bilateral partnership for the future,” said Goyal.
The minister said he was confident that the benefits of the partnership would flow from this year, as evidenced by the early victory in the gems and jewelery sector.
Goyal added that India and the UAE are also looking at education partnership and deep energy cooperation. Green hydrogen is going to be an area where both sides will work together.
The India-UAE startup bridge will also focus on bringing in investment houses from the UAE to work closely with Indian venture capital and private equity houses, according to an official release.
The bridge will also facilitate joint training sessions for incubators in India and the UAE. These sessions will focus on assisting in the development of training modules for UAE incubators and understanding what will be required for handling startups at an early stage.
Also, startups from the UAE will be exploring a joint program to explore travel and incubation opportunities in India.
The vast network of Indian incubators and their expertise will give UAE-based startups a great opportunity to work with Indian startups and the enablers of our ambitious ecosystem, according to the release.