UAE-India Cepa ignites big trade boom, nears $100 billion target
A landmark trade agreement between the UAE and India has fuelled a remarkable surge in bilateral commerce, with merchandise trade soaring from $43.3 billion in FY 2020–21 to $80.5 billion in the first 10 months of the current fiscal year, according to latest data.
The Comprehensive Economic Partnership Agreement (Cepa), signed three years ago, has not only revitalised economic ties but also positioned the two nations to smash their $100 billion trade target years ahead of the 2030 deadline while scripting a new playbook for global economic collaboration, said Faizal Kottikollon, chairman of the UAE India Business Council's UAE Chapter (UIBC-UC).
The transformative impact of Cepa took centrestage at a high-profile event hosted by Satish Kumar Sivan, consul-general of India to Dubai and Northern Emirates, marking the second anniversary of the UIBC-UC and the third year of the trade pact. Attended by UAE Minister of State for Foreign Trade Dr Thani bin Ahmed Al Zeyoudi, Indian Ambassador Sunjay Sudhir, and industry leaders, the gathering underscored the agreement's role as a cornerstone of one of the world's fastest-growing economic partnerships.
In his keynote address, Dr Al Zeyoudi hailed CEPA as a gamechanger, emphasising its role in unlocking new trade and investment avenues. He noted that non-oil trade — a critical pillar of the UAE's diversification strategy — has been turbocharged by the deal. The UAE's non-oil foreign trade hit a record Dh3 trillion ($816.7 billion) in 2023, up 14.6 per cent year-on-year, far outpacing global trade growth of just 2.0 per cent.
Ambassador Sudhir highlighted the human dimension of the partnership, stressing that 'investing in talent and innovation is the bedrock of sustainable growth.' His remarks dovetailed with the launch of new research initiatives aimed at guiding policymakers and businesses in navigating the evolving trade landscape.
Cepa's success lies in its dramatic diversification of trade flows. India's non-oil exports to the UAE reached $27.4 billion in FY 2023–24, growing at an annualised rate of 25.6 per cent since the deal took effect. While traditional sectors like gems, jewelry, and refined petroleum products remain vital, cutting-edge industries are now driving growth. Exports of electrical machinery, industrial boilers, and organic chemicals have surged, with smartphones emerging as an unexpected star — shipments to the UAE hit $2.57 billion this fiscal year.
'These numbers aren't just statistics; they represent jobs, innovation, and shared prosperity,' said Kottikollon. 'We're witnessing a fundamental shift in how our economies interact.'
The UAE's broader Cepa strategy — it has signed similar deals with several nations — has added Dh135 billion to non-oil trade with partner countries, up 42 per cent annually. With Dh3 trillion in total foreign trade already achieved for 2023, the emirates has crossed 75 per cent of its ambitious Dh4 trillion 2031 target seven years early.
Operational efficiency has been critical to the pact's success. Indian exporters have leveraged preferential tariffs under Cepa through 240,000 Certificates of Origin, facilitating $19.87 billion in exports. To address bottlenecks, both nations established a joint committee, which has met twice at the senior official level, most recently in October 2023. Technical teams have resolved issues ranging from customs procedures to rules of origin, while subcommittees now oversee services trade and digital facilitation.
'This isn't a static agreement,' noted an Indian commerce ministry official. 'Every meeting produces concrete solutions—whether it's simplifying paperwork or aligning product standards.'
Future growth may hinge on infrastructure like the Bharat Mart, a Dubai-based megaproduct inaugurated by Prime Minister Narendra Modi. Designed as a 'one-stop shop' for global buyers to access Indian goods, the facility is expected to streamline exports across sectors from textiles to engineering goods.
As protectionism rises elsewhere, the UAE-India partnership offers a template for South-South cooperation. The Indian Commerce Ministry credits Cepa with empowering MSMEs, generating jobs, and creating 'a new era of economic diplomacy.' For the UAE—already the Arab world's second-largest economy — the pact reinforces its role as a gateway linking Asia, Africa, and Europe.
'We're not just on track to hit $100 billion—we're redefining what's possible,' concluded Kottikollon. With bilateral trade growing at over 20 per cent annually since Cepa's implementation, that future may arrive sooner than anyone imagined.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Gulf Today
5 hours ago
- Gulf Today
Pakistan hikes defence budget 20%, but overall spending is cut
Pakistan Tuesday hiked defence spending by 20% following last month's deadly conflict with India. The government of Prime Minister Shehbaz Sharif announced the increase as part of the budget for the fiscal year 2025-26, in which overall spending will be cut by 7% to 17.57 trillion rupees ($62 billion). Pakistan and India were pushed to the brink of war earlier this year after a gun massacre of tourists in Indian-controlled Kashmir, marking the biggest breakdown in relations between them since 2019. Weeks of tension followed, culminating in missile and drone strikes that resulted in dozens of fatalities on both sides of the border. Finance Minister Muhammad Aurangzeb said the government was allocating 2.55 trillion rupees ($9 billion) for defense compared with 2.12 trillion rupees in the previous budget. India in February increased its defense spending by 9.5%. Sharif told the Cabinet: "All economic indicators are satisfactory. After defeating India in a conventional war, now we have to go beyond it in the economic field as well.' Opposition members of the National Assembly verbally abused Aurangzeb, chanting slogans, throwing scrunched-up copies of the budget at him, whistling, and banging their desks as he gave his address. The coming year's defense allocation is considerably more than the government's expenditure on higher education, agricultural development, and mitigating climate-related risks, to which Pakistan is especially prone. Associated Press
Sharjah 24
5 hours ago
- Sharjah 24
Sharjah opens door to baseball championships
During the meeting, both sides explored avenues of cooperation to promote the sport and organise championships, in light of its significant popularity among Asian communities. The initiative also aims to add a new promotional platform for Sharjah, enhancing its regional and international presence through sports. A Global Brand with Regional Aspirations Baseball United was founded in November 2022 and supports 20 globally renowned teams, including the New York Yankees, Los Angeles Dodgers, and Boston Red Sox. As a recognised international brand, its championships attract millions of viewers around the world—in Asia, the United States, Canada, Japan, and Latin America. The organisation is now on its way to launching the first professional league involving teams from the Gulf Cooperation Council (GCC) countries and the Indian subcontinent. Foundations for the Game in Sharjah During the meeting, discussions were held on establishing a dedicated headquarters for the sport and developing baseball fields as a foundation for spreading the game. Plans include organising local competitions and hosting international championships in the future. The two sides also explored initiatives to launch youth academies and school programmes to scout talent, as well as leveraging the global league platform to market Sharjah as a sports, tourism, and educational destination for baseball. Sharjah's Competitive Edge Following the meeting, His Excellency Issa Hilal Al Hazami emphasised that Sharjah possesses the right environment to promote baseball, especially considering its popularity among Asian communities. He pointed out that the sport shares many similarities with cricket—a game that already holds a distinguished position in the Emirate, thanks to its large fan base and the iconic Sharjah Stadium, which hosts international championships. He stressed that incorporating baseball and participating in the Asian league would ensure guaranteed promotion and significant exposure for the emirate. Optimism for a Fruitful Partnership The head of the visiting delegation expressed his gratitude to the Chairman of the Council for the warm welcome and the positive outcomes of the meeting. He also conveyed his optimism about the anticipated collaboration between the two sides and the transformative impact this partnership could have on the sport both locally and internationally.
Arabian Post
2 days ago
- Arabian Post
Apparel Group Unveils Go Colors' First Global Store
Arabian Post Staff -Dubai Apparel Group has marked a significant milestone by launching Go Colors' inaugural international store at Dubai's Silicon Central Mall, signalling the brand's entry into the global retail market. This expansion represents a strategic step for Go Colors, which has established a strong presence in India with its vibrant and affordable fashion offerings. The move aims to capitalise on Dubai's status as a retail hub, known for its diverse, fashion-conscious clientele and high footfall of international shoppers. Go Colors is part of the Apparel Group, a leading retail conglomerate that manages over 75 global brands across the Middle East, India, and beyond. The launch in Dubai is designed to leverage the city's cosmopolitan market, introducing Go Colors' distinct range of colourful apparel, accessories, and lifestyle products to a broader audience. The brand's identity revolves around youthful, trendy designs and a commitment to affordable pricing, which has resonated well with the domestic market and is now poised to attract the diverse demographics of Dubai's shoppers. ADVERTISEMENT Dubai's Silicon Central Mall, a recently developed retail complex situated in the heart of Dubai Silicon Oasis, was chosen for its strategic location and modern infrastructure. The mall is rapidly emerging as a key destination for technology and lifestyle retail, combining innovation with shopping experiences. This aligns with Go Colors' dynamic brand ethos and the Apparel Group's ambition to expand its footprint in premium retail locations. The new store covers approximately 2,000 square feet and features a wide array of products tailored to appeal to men, women, and children, maintaining the brand's core focus on versatility and style. The decision to launch Go Colors internationally reflects broader trends in the retail sector, where Indian-origin brands are increasingly seeking growth beyond domestic boundaries. This expansion is facilitated by Dubai's robust economic framework, ease of doing business, and a strong retail infrastructure that attracts international brands looking to establish a presence in the Middle East. Industry experts note that the Middle East retail market continues to grow steadily, driven by a young population, rising disposable incomes, and a blend of traditional and contemporary shopping preferences. Go Colors' entry into the Dubai market comes amid intensifying competition among apparel brands vying for consumer attention in the region. The brand's strategy focuses on differentiating itself through vibrant colour palettes, frequent new collections, and price accessibility. This approach is expected to attract not only the local UAE residents but also expatriates and tourists, who constitute a significant share of Dubai's retail consumers. By emphasising a youthful and energetic brand image, Go Colors aims to fill a niche that balances trendy fashion with everyday affordability. The Apparel Group's leadership expressed confidence in the growth potential of the new store. The group's CEO highlighted that the launch represents a blend of innovation, market understanding, and the ability to connect with diverse consumer groups. He underlined the importance of Dubai as a gateway for international expansion and pointed to the group's extensive experience in managing multiple global brands as a key asset in navigating new markets. The leadership's vision for Go Colors involves not only store expansion within the UAE but also potential future openings in other strategic locations worldwide. Operationally, the new store employs a mix of local staff trained in customer engagement and product knowledge, ensuring a high standard of service that aligns with the brand's values. The layout of the store is designed to offer a seamless shopping experience, combining colourful, eye-catching displays with intuitive product categorisation. This allows customers to easily navigate through seasonal collections, casual wear, and accessories. Additionally, the store integrates digital elements such as QR codes for product information and promotions, reflecting a growing trend towards blending physical and digital retail experiences. ADVERTISEMENT Market analysts observe that the Apparel Group's expansion strategy is well-timed, considering the growing appetite for fast fashion and lifestyle brands in the Middle East. The region's retail sector is adapting rapidly to shifts in consumer behaviour, with increased demand for value-oriented yet stylish apparel. Go Colors' proposition fits into this paradigm by offering fresh designs frequently, thus catering to consumers seeking variety without compromising affordability. This trend is underscored by data indicating increased spending on casual and lifestyle clothing across GCC countries, driven by younger demographics and evolving fashion sensibilities. While the launch signals optimism, challenges remain for Go Colors as it enters a competitive and sophisticated market. Established international brands and regional players alike have entrenched customer bases, and consumer expectations for quality, trendiness, and service are high. Success will depend on how effectively Go Colors can localise its product offerings, adapt to cultural preferences, and sustain a compelling value proposition. The Apparel Group's experience in the Middle East retail sector, including managing franchises and original brands, is expected to play a crucial role in mitigating these challenges. The store opening is also part of a wider retail resurgence in Dubai, as the city continues to attract global investors and shoppers post-pandemic. Retail experts point to increased foot traffic in malls and rising consumer confidence as indicators of a robust recovery. Government initiatives promoting tourism, retail innovation, and business-friendly policies have contributed to this positive environment. For Go Colors, entering this market now could provide early mover advantages as consumer habits stabilise and purchasing power strengthens.
