New Delhi: India and the United Arab Emirates (UAE) Friday signed a Comprehensive Economic Partnership Agreement (CEPA) with the aim of taking two-way trade to $100 billion by 2027.
The two countries also vowed to enhance their defence and security partnership.
The summit, which was held virtually between Prime Minister Narendra Modi and crown prince of Abu Dhabi and deputy supreme commander of UAE armed forces Sheikh Mohamed bin Zayed al Nahyan, also witnessed the release of a new vision document between both countries — Advancing The India-UAE Comprehensive Strategic Partnership: New Frontiers, New Milestones.
Referring to the Abu Dhabi crown prince as his “brother”, Prime Minister Modi said India and UAE bilateral ties reached “newer heights” with the signing of the CEPA. This is India’s first ever trade pact with a Gulf country.
UAE is India’s third-largest trading partner, with two-way trade presently standing at $60 billion.
The CEPA, the negotiations for which were launched in September 2021, is expected to “usher in stronger economic relations between the two countries and open new avenues for trade and investment,” according to the joint India-UAE vision statement.
Also read: India, UAE will stand shoulder to shoulder against terrorism: Modi
UAE plans investments under CEPA in J&K
Under the trade pact, investments from the UAE are also expected to get a major boost, with Abu Dhabi planning to invest heavily in Jammu and Kashmir as the CEPA gets implemented. Investments from UAE to India have increased to $17 billion presently from $3 billion in 2014.
There has been marked difference in UAE approach to investments in India, from the earlier time when they used to feel inhibited due to “legacy issues like Emaar and Etisalat,” official sources told ThePrint.
UAE-based firms Emaar and Etisalat had faced legal problems in India regarding investment in the country.
Sources said all those issues have been addressed through the High Level Task Force on Investments, which last met in October 2021.
Both sides have also decided to establish a dedicated India Mart in Jebel Ali Free Zone, a dedicated investment zone for UAE companies and joint ventures which would focus on establishing a food corridor and promote food security of the UAE and increase in food exports from India.
In energy cooperation, it has been agreed that UAE’s participation in India’s Strategic Petroleum Reserves Programme will expand.
“The UAE is one of India’s key energy providers and remains committed to meeting India’s growing energy demand and is proud to have been the first international partner to invest by way of crude oil in India’s Strategic Petroleum Reserves Program. Indian companies have steadily increased their participation across the entire UAE’s energy sector and represent some of Abu Dhabi’s key concession and exploration partners,” the statement said.
It added, “Further work will be undertaken to identify new collaboration opportunities to support India’s energy requirements, including new energies, and ensure the provision of affordable and secure energy supplies to India’s growing economy.”
Defence and counterterrorism
Both sides agreed to expand maritime cooperation and have reaffirmed their joint commitment to the fight against extremism and terrorism, including cross-border terrorism, in all forms, at both regional and international levels, the vision document said.
Both leaders have “reiterated hope that the Abraham Accords will contribute to regional peace and create positive change for the Middle East region,” sources said.
“India and UAE will stand shoulder-to-shoulder against terrorism,” Prime Minister Modi said, while condemning the recent attacks by Yemen’s Houthis in which two Indian nationals were killed.
He said this summit will lay the roadmap for expanding the Comprehensive Strategic Partnership signed in 2017.
On Afghanistan too, India and the UAE have been holding regular consultations. After the Taliban takeover of Kabul, UAE’s Presidential Advisor Anwar Gargash had visited India to discuss the evolving situation.
(Edited by Saikat Niyogi)
Also read: CEPA expected to boost India-UAE trade from USD 60 billion to 100 billion in five years