Dr Sakthivel sees Dubai as marketing base for Indian products and services to the African continent
Having recorded a US$20 billion exports to the United Arab Emirates in the first nine months of the current financial year, FIEO says the just signed Comprehensive Economic Partnership Agreement (CEPA) will open vistas of opportunity of Indian trade, both of goods and services, with the Emirates.
While exact tariff concessions are not known, a CEPA with The UAE will be extremely beneficial to Indian exports particularly for the labour-intensive sectors like agriculture and processed food including meat and marine products, gems & jewellery, apparel & textiles, leather & footwears as well as other sectors like engineering, organic chemicals, plastics, paper & paper products, iron & steel, electrical and electronics, automobile and auto components as well as pharmaceuticals, said the Federation, wecloming CEPA.
The UAE, with a large Indian diaspora population, consumes Indian cereals, fruits & vegetables, tea, spices, sugar, etc.
Indian companies will gain in services like travel & tourism, transportation, IT & ITES and construction services, said FIEO.
Besides the expected exponential growth in India’s exports to the Emirates, the trade pact will also open other GCC markets, FIEO President Dr A Sakthivel said on 18 Feb 2022, the day CEPA was signed.
The GCC countries also follow the same technical standards as applicable to the UAE paving the way for greater Gulf market access to Indian goods. “This may be used as a template for similar agreements with the GCC countries,” he pointed out.
The UAE is also a re-distribution centre and a financial hub for African markets. Much of exports to Africa is routed through Dubai, Dr Sakthivel noted.
The CEPA signing will encourage setting up of warehousing and distribution centres in the UAE for exports to Africa, he believes.
“A lot of African buyers come to Dubai and place orders from there itself and thus showcasing Indian goods in the UAE will be a very good strategy for marketing our products and services for the African continent,” said Dr Sakthivel.
The proposal to set up an “India Mart” in Dubai will further supplement this objective.
The CEPA will facilitate investment through the UAE-based sovereign funds in various facets of infrastructure as well as in some of the sectors identified under the PLI Scheme.
The UAE-based companies will be encouraged to produce in India and cater to both Indian and their domestic markets with duty free access, opined the FIEO Chief. fiinews.com
