The Comprehensive Economic Partnership Agreement (Cepa) between the UAE and India has significantly boosted bilateral trade by 16.41% since 2022, while enhancing collaboration to support startups through the exchange of best practices among accelerators, incubators, and other ecosystem stakeholders, according to Minister of Economy Abdulla Bin Touq Al Marri.
The minister, who recently led a UAE delegation to India, noted that the rapid growth in two-way trade positions both countries to exceed the $100 billion non-oil trade target by 2030. He highlighted that Cepa, which took effect on May 1, 2022, has provided numerous benefits to the private sector, resulting in a remarkable 16.41% increase in trade from $72.87 billion in 2021-2022 to $84.84 billion in 2022-2023.
Indian exports of gems and jewellery, drugs and pharmaceuticals, and fruits and vegetables to the UAE have seen substantial growth post-Cepa implementation. Additionally, Indian FDI in the UAE is on the rise, with 11,000 new Indian companies registered in 2022, bringing the total to over 83,000.
During their visit, the UAE delegation engaged in discussions with Tamil Nadu's leaders to strengthen cooperation in new economy sectors, tourism, entrepreneurship, SMEs, transport, and fintech. Al Marri emphasized that the startup and SME cooperation is a core component of Cepa, facilitated by the exchange of best practices among ecosystem stakeholders.
The 'India-UAE Startup Bridge' was launched to make the startup ecosystem information easily accessible to entrepreneurs and stakeholders from both countries, aiming to support capacity building, incubation opportunities, investment cooperation, and fundraising for startups.
Al Marri underscored the strategic economic, political, and cultural relations between the UAE and India, highlighting India as a key economic partner. He anticipates continued collaboration in mutual interest areas to enhance the economic partnership and support the growth and sustainability of both economies.
The UAE's FDI in India spans vital sectors including renewable energy, software, IT services, and automotive manufacturing. Non-oil trade between the countries is also growing, with a total value exceeding $53.5 billion in 2023, a 3.9% increase from 2022.
Regarding the National Tourism Strategy 2031, Al Marri stated that it aims to elevate the UAE's global tourism status, increase its contribution to the national GDP to Dh450 billion, and attract Dh100 billion in new investments to the tourism sector by the next decade.
