Lok Sabha Question No. 2432 (UNSTARRED), answered on 2022-03-16
Subject: Agreement with UAE
Ministry: COMMERCE AND INDUSTRY
Asked by: Girish Bhalchandra Bapat, Rahul Ramesh Shewale, Chandra Sekhar Sahu, Pritam Gopinath Munde

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY (DEPARTMENT OF COMMERCE)

## LOK SABHA UNSTARRED QUESTION NO. 2432 TO BE ANSWERED ON 16 th  MARCH, 2022

## AGREEMENT WITH UAE

## 2432. SHRI GIRISH BHALCHANDRA BAPAT:

SHRI RAHUL RAMESH SHEWALE:

SHRI CHANDRA SEKHAR SAHU:

DR. PRITAM GOPINATHRAO MUNDE:

Will the Minister of COMMERCE & INDUSTRY ( वाणिज्य एवं उद्योग मंत्री ) be pleased to state:

- (a) whether India and  UAE  agreed  for  Comprehensive  Economic  Partnership Agreement recently;
- (b) if  so,  the  details  thereof  and  the  extent  to  which  it  is  likely  to  be  beneficial  for MSMEs, Startups, farmers, traders and all sections of business in both the countries;
- (c) the details of offers UAE have agreed to extend to India under this agreement;
- (d) whether bilateral goods trade between the two countries will boost on implementation of CEPA;
- (e) if  so,  the  details  thereof  along  with the targets of various sectors fixed for such trade; and
- (f) the details of the employment opportunities likely to be increased in the country due to this agreement?

## ANSWER

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THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE AND INDUSTRY (SMT. ANUPRIYA PATEL)

(a) to (b): Yes. India and the United Arab Emirates (UAE) signed the Comprehensive Economic Partnership Agreement (CEPA) on the side-lines of the India-UAE Virtual Summit held on 18 th February, 2022. The India-UAE CEPA is a comprehensive and balanced partnership agreement which will give enhanced market access for India in both goods and services. The India-UAE CEPA will be extremely beneficial for MSMEs, start-ups, farmers, traders, and all sections of businesses by opening new markets, enhancing exports and boosting our economy. Further, the India-UAE CEPA will not only increase exports of goods from India to the UAE but also to the Middle East and Africa.

(c): UAE has offered immediate market access at zero duty from day one of the entry into force of the Agreement to products accounting for around 90% of India's exports to the UAE in value terms. Overall, India will benefit from preferential market access provided by the UAE on over 97 % of its tariff lines which account for around 99% of Indian exports to the UAE in value terms. As regards trade in services, the UAE has offered market access to India in around 111 sub-sectors from the 11 broad service sectors.

(d) to (f): Yes. Bilateral trade in goods is projected to increase from the current USD 60 billion to USD 100 billion annually within five years of implementation of the India-UAE CEPA. Further, the  India-UAE CEPA is expected to  create  a  large  number  of  new  employment  opportunities especially across multiple labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, medical devices, and Automobiles.

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