Executive Summary:
This document is the Indian government's response to questions regarding the gains made by Indian exporters and manufacturers since the signing of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) in 2022. It highlights the growth in bilateral trade, key sectors that have witnessed increased exports, support provided to MSMEs, and the benefits of tariff reductions under CEPA. The CEPA was signed on February 18, 2022, and came into force on May 1, 2022.
Key Points / Main Content:
* **India-UAE CEPA Overview:**
* Signed on February 18, 2022, and effective from May 1, 2022.
* Aims to provide enhanced market access and reduced tariffs for businesses.
* **Trade Growth:**
* Bilateral trade increased from USD 72.87 billion in FY 2021-22 to USD 100.06 billion in FY 2024-25.
* Merchandise exports to the UAE grew from USD 28.04 billion in 2021-22 to USD 36.63 billion in 2024-25.
* **Bilateral Engagement:**
* Continuous engagement through regular high-level meetings, including the Joint Committee.
* The Trade in Goods Committee addresses issues related to bilateral trade.
* Sub-Committees deliberate on trade in services, rules of origin, customs procedures, and trade facilitation.
* **Key Export Sectors:**
* Significant export growth in Engineering Goods, Gems & Jewellery, Agricultural Products, Marine Products, Pharma, and Electronics goods.
* **Support for MSMEs:**
* India benefits from preferential market access provided by the UAE covering sectors important to MSMEs.
* A Joint SME Committee promotes partnership between SMEs.
* Market Access Initiative (MAI) Schemes provide financial help to promote exports to targeted countries, including the UAE.
* International Cooperation (IC) Scheme facilitates MSME participation in international trade fairs in the UAE.
* **Tariff Reductions:**
* CEPA covers almost all tariff lines (India: 11,908; UAE: 7,581).
* India benefits from preferential market access on over 97% of its tariff lines, accounting for 99% of Indian exports to the UAE.
* Benefiting products include gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, medical devices, and automobiles.
Impact Analysis:
* **Indian Exporters and Manufacturers:**
* Impact: Benefit from enhanced market access, reduced tariffs, and increased export opportunities in the UAE.
* Action Required: Leverage the preferential market access and tariff reductions to increase exports. Participate in trade fairs and utilize available support schemes.
* **MSMEs:**
* Impact: Gain access to preferential market conditions and increased opportunities for partnership and growth in the UAE market.
* Action Required: Engage with the Joint SME Committee, utilize MAI and IC Schemes, and participate in international trade fairs.
* **Government of India (Ministry of MSME, Department of Commerce):**
* Impact: Responsible for facilitating and supporting Indian exporters and MSMEs in capitalizing on the opportunities provided by the CEPA.
* Action Required: Continue to engage with the UAE, implement support schemes, and monitor the progress of trade and cooperation.
* **UAE Businesses:**
* Impact: Benefit from enhanced market access to India and reduced tariffs on various products.
* Action Required: Explore opportunities for trade and investment in India under the CEPA.
Key Entities Referenced
India-UAE Comprehensive Economic Partnership Agreement: A trade agreement between India and the United Arab Emirates (UAE) aimed at enhancing economic cooperation.
Ministry of Commerce and Industry: The Indian government ministry responsible for international trade and industrial development.
United Arab Emirates: A country in the Middle East and a key trading partner of India.
SHRI JITIN PRASADA: The Minister of State in the Ministry of Commerce and Industry.
MSMEs: Micro, Small and Medium Enterprises which are being supported to leverage opportunities from the India-UAE CEPA.
Market Access Initiative: A scheme (MAI Schemes) to promote India's exports on a sustained basis to targeted countries including UAE.
Trade in Goods Committee: A committee established to address issues related to bilateral trade between India and the UAE.
Joint SME Committee: A committee constituted to promote partnership between the SMEs of both sides and identify ways to assist SMEs in taking advantage of the commercial opportunities arising from India UAE CEPA.
GOVERNMENT OF INDIA
MINISTRY OF COMMERCE AND INDUSTRY
(DEPARTMENT OF COMMERCE)
LOK SABHA
UNSTARRED QUESTION NO. 305
ANSWERED ON 22.07.2025
Gains Made by Indian Exporters
305. SMT. RACHNA BANERJEE:
Will the Minister of COMMERCE AND INDUSTRY (वाणिज्य और उद्योग मंत्री) be
pleased to state:
(a) the steps taken by the Government to provide detailed assessment of the gains
made by Indian exporters and manufacturers since the signing of the India-UAE
Comprehensive Economic Partnership Agreement (CEPA) in 2022;
(b) the specific sectors that have witnessed significant growth in exports to the UAE
post-CEPA;
(c) whether there are any support being provided to MSMEs to tap into these
opportunities, if so, the details thereof; and
(d) the details of the list of Indian products that have benefited from tariff reductions
under CEPA and the manner in which this has impacted competitiveness in the UAE
market?
ANSWER
वाणिज्य और उद्योग मंत्रालय में राज्य मंत्री (श्री णिणिन प्रसाद)
THE MINISTER OF STATE IN THE MINISTRY OF COMMERCE & INDUSTRY
(SHRI JITIN PRASADA)
(a) The India-UAE Comprehensive Economic Partnership Agreement (CEPA) was
signed on 18 February 2022 and came into force on 1 May 2022. The Agreement
provides significant benefits to Indian and UAE businesses, including enhanced
market access and reduced tariffs. Since the signing of CEPA, India-UAE bilateral
trade has witnessed robust growth and diversification with trade increasing from 72.87
USD billion in FY 2021-22 to USD 100.06 billion in FY 2024-25. Since signing of the
Agreement, India has engaged continuously with the UAE side through regular high-
1level meetings like the Joint Committee, established as an institutional mechanism to
take stock of the implementation of CEPA. The Trade in Goods Committee has also
met several times to address issues related to bilateral trade. Both sides have taken
concrete steps to operationalize various other Sub-Committees as well to deliberate
on issues related to trade in services, rules of origin, customs procedure and trade
facilitation.
(b) Our merchandise exports to UAE have grown from 28.04 billion USD in 2021-22
to 36.63 billion USD in 2024-25 exhibiting a growth of 7% . Key sectors that have seen
increase in exports from India since CEPA came into force are Engineering Goods,
Gems & Jewellery, Agricultural Products, Marine products, Pharma and Electronics
goods.
(c) Under the provisions of the CEPA, India stands to benefit from preferential market
access provided by the UAE covering several sectors important to MSMEs. Ministry
of MSME has constituted a Joint SME Committee under the provision of bilateral
CEPA, to promote partnership between the SMEs of both sides and identify ways to
assist SMEs in taking advantage of the commercial opportunities arising from India-
UAE CEPA. Through Market Access Initiative (MAI) Schemes, MSMEs are provided
financial help which acts as a catalyst to promote India’s exports on a sustained basis
to targeted countries including UAE. Ministry of MSME, through its International
Cooperation (IC) Scheme had facilitated participation by India MSME delegations of
MSME representatives in various international trade-fairs/exhibitions held in UAE.
(d) The CEPA between India and the UAE covers almost all tariff lines of India
(11,908) and the UAE (7,581) respectively. India benefits from preferential market
access provided by the UAE on over 97% of its tariff lines which account for 99% of
Indian exports to the UAE in value terms which includes gems and jewellery, Textiles,
leather, footwear, sports goods, plastics, furniture, agricultural and wood products,
engineering products, medical devices and Automobiles.
*****
2