Implementation of the comprehensive free trade agreement between India, the UAE would help boost the countries exports. The reaction of lakhs of jobs, according to exporters.
Welcoming the signing of the Comprehensive Economic Partnership Agreement between India and the United Arab Emirates.
Apparel Export Promotion Council Chairman explained that it will further strengthen India’s dominant position in the United Arab Emirates with India.
Supplying USD 1,515 million of apparel to the United Arab Emirates as against its total imports of USD 3,517 million, the Indian apparel exports contribute a decent share of 43%.
The trade pact would result in a drop of 5 % import duty for Indian readymade garments. It will further strengthen the dominant position of Indian apparel in the United Arab Emirates chairman added.
He also explained that Indian apparel exports to the United Arab Emirates also cater to the needs of Saudi Arabia, Kuwait, Bahrain, Oman, etc.
FIEO President explained that the pact will be beneficial to Indian exports for labor-intensive sectors like agriculture and processed food including meat, marine products, gems and jewelry, leather also footwear.
Having a large Indian diaspora in the United Arab Emirates consumes a large number of Indian cereals also fruits and vegetables, tea, spices, sugar.
Indian companies will gain in services like travel & tourism, transportation, IT and ITES and construction services he added that.
Sharing similar views, the Chairman of India Arab Council that the pact is set to reduce tariffs for 80% of goods and gives zero-duty access to 90 % of India’s exports to the United Arab Emirates.
Annual bilateral trade increased from the current level of USD 60 billion to USD 100 billion, augmenting Indian exports of gems, jewelry, textiles, leather, and pharmaceuticals.
Council for Leather Exports Chairman explained that the UAE is one of the key markets for the sector, it would also give access to certain EU countries and Africa.
The pact would help in boosting exports, creating jobs Plastics Export Promotion Council of India chairman explained that currently India’s annual imports of plastic raw materials are USD 14 billion and imports from the UAE are USD 800 million.
The trade with plastics between India and the United Arab Emirates is poised for a multi-fold growth due to this pact besides the creation of about 2 lakh jobs in the sector.
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