India and the United Arab Emirates signed a Comprehensive Economic Partnership Agreement (CEPA) covering several goods, services, digital goods and other things which will allow 90% of the country’s exports duty-free access into the UAE. This pact is expected to eventually cut-off all tariffs on each other’s goods and it aims to increase the annual non-oil trade between both nations to $100 billion within 5 years.
This pact is India’s first comprehensive pact with any country in a decade and its first bilateral trade pact in the region. The CEPA is expected to create several investment opportunities for Indian investors in establishing specialised industrial advanced technological zones in Abu Dhabi with greater focus on logistics, services, pharmaceuticals, medical devices, steel, aluminium and others. Both India and UAE have agreed to support the clean energy emissions project and set up a joint hydrogen task force to improve their technologies, specially those regarding green hydrogen.
Moreover, the Indian government will be setting up an Indian Institute of Technology in the UAE as a part of the deal. This will be the first time that an IIT is set up outside India. India currently has 23 IITs. There is also the commitment from the UAE to provide employment visas to 140,000 skilled Indian workers by 2030. The deal is expected to be fully implemented within 1.5-2 years.
Highlight by Aman Agarwal.