Prime Minister Narendra Modi and Abu Dhabi Crown Prince Sheikh Mohamed bin Zayed will witness the signing of key strategic agreements, including UAE-India Comprehensive Economic Partnership Agreement, during a virtual summit on Friday, reports Asian Lite Newsdesk
Prime Minister Narendra Modi and Crown Prince of Abu Dhabi and Deputy Supreme Commander of UAE Armed Forces, Sheikh Mohamed bin Zayed al Nahyan will hold a Virtual Summit on February 18, the Ministry of External Affairs (MEA) informed on Wednesday.
The two leaders will discuss bilateral cooperation and exchange views on regional and international issues of mutual interest, India’s Ministry of External Affairs said in a statement.
“Both leaders are expected to lay out their vision of the historic and friendly relations between the two countries, at a time when India is celebrating 75 years of its Independence as Azadi Ka Amrit Mahotsav and UAE is celebrating the 50th anniversary of its foundation,” the MEA said in a press release.
During the summit, the two leaders will witness the signing of key strategic agreements between the fraternal countries in India’s capital, New Delhi. This includes the United Arab Emirates-India Comprehensive Economic Partnership Agreement (UAE-India CEPA) which will usher in a new era of economic cooperation and unlock greater avenues for trade and investment.
In recent years, bilateral relations between India and the UAE have strengthened in all areas, and both sides have embarked upon a comprehensive strategic partnership. Prime Minister visited UAE in 2015, 2018, and 2019 while the Crown Prince of Abu Dhabi visited India in 2016 and 2017. Ministerial visits between the two sides have also continued, including three visits of External Affairs Minister and a visit of Commerce and Industry Minister to UAE in 2021.
Both sides have collaborated closely during the Covid-19 pandemic in critical areas of healthcare and food security. Bilateral trade, investment, and energy relations have remained robust. The two sides are also strengthening their cooperation in new areas of renewable energy, start-ups, fintech, etc. India is participating with one of the largest pavilions in the Dubai Expo 2020.
A major initiative in bilateral relations is the Comprehensive Economic Partnership Agreement (CEPA). Negotiations for CEPA were launched in September 2021 and have been completed, the MEA said.
The Agreement will take India-UAE’s economic and commercial engagement to the next level. UAE is India’s third-largest trade partner, and bilateral trade and investment ties are expected to see significant enhancements.
UAE hosts a large Indian community which numbers close to 3.5 million. Prime Minister has expressed India’s appreciation to the leadership of UAE for supporting the Indian community during the pandemic. UAE leadership has also been appreciative of the contribution of the Indian community in its development.
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Both sides had agreed on an Air Bubble Arrangement in 2020 during the pandemic which has enabled the movement of people between two countries despite the challenges posed by Covid-19.
Bilateral non-oil trade is anticipated to rise to $100 billion within five years.
Beneficial for gem, jewellery exports
The India-UAE Free Trade Agreement is expected to help the industry take a bigger leap in exports of plain gold and gold studded jewellery which was hit badly during the pandemic, the Gem and Jewellery Export Promotion Council (GJEPC) said on Wednesday.
The Indian gem and jewellery export sector has shown quick recovery post the pandemic.
Exports during April 2021-January 2022 rose by 12.28 per cent to worth Rs 2.4 lakh crore, as compared to Rs 2.14 lakh crore during the same period in the corresponding year, the council said in a statement.
For the FTA with UAE, the council has recommended the Centre for abolition of import duty of 5 per cent on the exports of gold, silver, and platinum jewellery from India, the statement added.
“UAE accounts for 80 per cent of India’s plain gold jewellery exports and 20 per cent of studded jewellery exports. The FTA between India and UAE has come at an opportune time when both countries are looking to rebound from the Covid-19 setback and recalibrate and realign their common business interests, including gold and diamonds,” said Colin Shah, Chairman of the council.”
UAE is a gateway to the entire Middle East region and the proposed abolition of 5 per cent import duty in UAE would lead to increased prosperity on both sides of the Arabian Sea.
“The FTA will provide impetus and much needed push to exports of gem and jewellery products to the Emirates as the exports to UAE declined significantly to $1.18 billion in 2020-2021 due to the Covid-19 pandemic situation.
“With proposed nil duty, the council is confident that exports of plain gold jewellery and gold studded jewellery from India to UAE would boost to $10 billion in 2023, Shah added.
According to reports, the bilateral agreement is likely to be signed on February 18, where both the countries could give duty-free access to a number of products from different sectors.