MUMBAI, Feb 19: The Comprehensive Economic Partnership Agreement (CEPA) signed between India and the UAE will not only strengthen the bilateral trade ties but also also boost exports and create 10 lakh job opportunities in India, Union Minister Piyush Goyal said on Saturday.
India and the UAE on Friday signed the trade pact after concluding negotiations in a short time of 88 days.
“CEPA will be extremely beneficial for MSMEs, startups, farmers, traders and all sections of businesses. This agreement will provide enhanced market access for both goods and services and will create jobs for our youth, open new markets for our startups, make our businesses more competitive and boost our economy,” the commerce and industry minister told reporters here.
Goyal said sector-wise consultations have shown that the pact will create an additional 10 lakh jobs for Indian citizens.
“Our thrust on exports, coupled with CEPA and going forward our FTA negotiations with the GCC, Australia and Canada will further enhance the country’s market access and help boost our exports,” Goyal added.
The CEPA will open doors especially for the labour-intensive Indian products which are exported to the UAE, including textiles, gems and jewellery, medicines, agricultural products, footwear, leather, sports goods, engineering goods, auto components and plastics, he noted.
“Around 90 per cent of products exported from India to UAE will attract zero duty with implementation of the agreement. About 80 per cent lines of trade will attract zero duty, remaining 20 per cent does not affect our exports much, so this is a win-win agreement,” he said.
The minister further said the CEPA will not only improve competitiveness of Indian products, but also provide strategic advantages to India.
“Since UAE functions as a trading hub, the agreement will help provide us market entry points to Africa, Middle East and Europe,” he stated.
With this agreement, India and the UAE aim to increase bilateral trade to over USD 100 billion the next five years, Goyal said.
“However, I believe that the potential for trade between the two nations is even bigger. We will surpass the target we have set for ourselves,” he added. (PTI)
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