New Delhi: Indian exports of gems and jewellery and automobiles have made big gains in nearly one year under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), while exports of iron and steel to the UAE have seen a decline.
On 1 May 2022, the CEPA between India and the UAE came into force, under which the UAE eliminated duties on 97.4 per cent of its tariff lines (or product categories) corresponding to 99 per cent of imports from India.
During a press briefing Monday, commerce secretary Sunil Barthwal said: “The important sectors which were our priority, like labour-intensive and emerging sectors of India, have shown substantial growth.”
He added that the two countries have a joint mechanism to address implementation issues, citing the recent revised notification of gold that was a response to inadequate utilisation of tariff-rate quota.
Asked why Indian steel products didn’t perform well under the CEPA, Alok Sahay, secretary general of the Indian Steel Association (ISA), explained that it was because of the imposition of a levy on steel products and iron ore that the government only cut in November 2022.
“The decline in steel export globally from India during (fiscal) 2022-23 has been the result of imposition of export duty by the central government from 22 May till 16 November 2022. Steel exports to UAE have been no exception as export duty was applicable on free trade agreements/CEPAs as well,” he explained.
“This year’s figure will improve and will register growth. India is expected to be a major exporter to the UAE again,” Sahay added.
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India’s exports to UAE grow faster than total exports
According to data released by the commerce ministry, India’s exports to the UAE have grown at a faster pace than its total exports across the world.
Comparing figures for fiscal 2022 with fiscal 2023, India’s exports to the world saw 5.3 per cent growth, to $444.4 billion from $422 billion, while exports to the UAE grew at a rate of 11.8 per cent, to $31.3 billion from $28 billion, the data showed.
India’s gems and jewellery exports to the UAE saw a 16 per cent jump, growing to $5.7 billion in the April 2022-March 2023 period from $4.9 billion in the April 2021-March 2022 period. Motor cars and other motor vehicles saw a 50 per cent surge in exports.
On the other hand, UAE’s exports to India also grew considerably, mainly driven by petroleum products and oil. For example, UAE exports of mineral fuels, mineral oils, mineral waxes and other such products saw a 36 per cent increase, growing from $20.3 billion in fiscal 2022 to $27.6 billion in value in fiscal 2023.
Interestingly, while Indian steel exports to the UAE suffered, UAE’s steel exports to India grew 28 per cent from fiscal 2022 to fiscal 2023, according to commerce ministry data.
(Edited by Nida Fatima Siddiqui)
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