ABU DHABI — The United Arab Emirates (UAE) and India have initiated a package of action plans to bolster sectors of the new economy in their markets, said UAE’s Minister of Economy Abdullah bin Touq Al Marri, adding that the move is aimed at stimulating the growth of Emirati and Indian startups to enhance the gross domestic product of the two countries.
‘’The UAE and the friendly Republic of India are united by strong bilateral relations and a sustainable strategic partnership, as economic relations were characterized by continuous development and common denominators in visions and strategies aimed at expanding in new economic sectors as vital drivers that support sustainable growth and competitiveness of their economy,’’ said Bin Touq.
“The Emirati-Indian economic cooperation is gaining increasing momentum in sectors of the circular economy, tourism, aviation, entrepreneurship, small and medium enterprises, renewable energy, technology, digital transformation and transportation, in light of their economic partnership and the capabilities,’’ the minister pointed out.
The two countries, he added, affirmed their mutual desire to bolster cooperation in areas of common interest to stimulate the economic growth of the two countries and create new, promising opportunities for Emirati and Indian business communities.
‘’We are determined to advance our economic partnership with our partners in the Indian government and to continue joint efforts, especially since India is one of the five largest markets exporting tourism to the country, ‘’ he said, adding that non-oil foreign trade between the two countries reached AED 188.8 billion in 2022, a growth of 15 percent compared to 2021.
The Comprehensive Economic Partnership Agreements (CEPA) program launched by UAE in 2021, which includes its partnership with India, underscores the rapid advancement in their relations.
The nations have achieved significant milestones in 2022 and 2023, including the initiation of the UAE-India CEPA in May 2022, which benefited Emirati businesses by reducing or waiving tariffs on over 80 percent of UAE goods exported to India. The agreement also facilitated trade by eliminating technical barriers and offered UAE businesses access to Indian government procurement opportunities.
Other key initiatives included the 14th Session of the UAE-India Joint Committee Meeting in September 2022 and the announcement of a trilateral alliance with France in February 2023, focusing on energy and combating climate change.
In May 2023, Al Marri held discussions with Indian ministers and officials, exploring ways to increase and diversify mutual investments and enhance economic ties.
A significant development in June 2023 saw both nations set a target of $100 billion in non-oil trade by 2030 during the first CEPA Joint Committee meeting.
Other key areas of collaboration were highlighted during the minister’s visit. In May 2022, the UAE and India committed to combat climate change through a Memorandum of Understanding (MoU), vowing to increase their focus on renewable energy, green hydrogen, agricultural efficiency, and sustainable finance.
Moreover, in May 2023, discussions between Al Marri and India’s Minister of Commerce and Industry, Piyush Goyal, centred on broadening current economic ties by initiating new innovative projects. This approach aims to harness the potential of their markets and further the development of startups, ultimately boosting the GDP contributions of each country.
In the same month, UAE officials attended the annual conference of the Confederation of Indian Industry (CII) in New Delhi, where the global investment platform, Investopia, unveiled a new collaboration with the CII. This partnership aims to exchange expertise, organize trade missions, and highlight attractive investment opportunities in emerging economic sectors in both the Indian and Emirati markets.
The first anniversary of the UAE-India CEPA signing in June 2022 saw the operationalization of the established committees, sub-committees, and a technical council under the CEPA, and the launch of a new sub-committee on Trade in Services. The two sides also agreed on a quarterly exchange of preferential trade data for effective monitoring of the CEPA.