In a landmark move, the United Arab Emirates (UAE) and India have signed a comprehensive trade agreement to boost economic ties between the two countries. The deal, which was signed on February 11, 2021, is set to strengthen bilateral relations and open up new opportunities for trade and investment.
The trade agreement is expected to enhance bilateral trade between the UAE and India, which already stands at $60 billion. Under the agreement, both countries have agreed to reduce trade barriers, facilitate the movement of goods and services, and enhance cooperation in key sectors such as renewable energy, healthcare, and food security.
One of the key provisions of the agreement is the removal of tariffs on 200 products from each other`s markets. This move is expected to increase the export of Indian goods to the UAE, which is currently India`s third-largest trading partner. The UAE, on the other hand, will benefit from increased access to India`s vast consumer market, which is expected to grow to $1.3 trillion by 2025.
Another significant aspect of the trade agreement is the establishment of a joint committee to monitor and review the progress of the deal. The committee will also identify new areas of cooperation and facilitate a smoother trade exchange between the two countries.
Apart from trade, the agreement also focuses on enhancing investment ties between the UAE and India. The UAE is already one of the largest investors in India and has invested over $10 billion in various sectors such as energy, infrastructure, and telecommunications. The new agreement is expected to attract even more investment from the UAE, particularly in sectors such as real estate, tourism, and healthcare.
The trade agreement is a win-win for both countries and is expected to provide a much-needed boost to their economies, which have been hit hard by the COVID-19 pandemic. India, in particular, has been looking to bolster its trade ties with other countries in light of the ongoing economic crisis.
Overall, the trade agreement between the UAE and India is a significant step towards strengthening economic ties between the two countries. As both countries look to diversify their economies and reduce their dependence on traditional partners, this agreement is likely to be the first of many such collaborations in the future.