India and UAE on track to hit $100 mn in non-oil trade by 2030, says commerce ministry

New Delhi: India and the United Arab Emirates (UAE) are on track to achieve a significant milestone of $100 million in non-oil trade by 2030, according to a statement from the commerce & industry ministry on Tuesday.

This announcement follows the second meeting of the Joint Committee (JC) under the Comprehensive Economic Partnership Agreement (Cepa), held in the UAE.

The Indian delegation was led by Ajay Bhadoo, additional secretary in the commerce department, alongside Juma Al Kait, assistant undersecretary for International Trade Affairs from the UAE economy ministry, who co-chaired the meeting.

"Both sides noted substantial growth in bilateral trade during the first two years of implementation of Cepa and expressed optimism in attaining the target of $100 million non-oil trade well before 2030," the statement said.

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"The two sides also held wide-ranging discussions on all aspects of the bilateral partnership, including measures to strengthen and enhance two-way trade," it added.

Tariff Rate Quotas

A key focal point of the meeting was the implementation of Tariff Rate Quotas (TRQ) on designated products, with both parties agreeing to collaborate closely to ensure UAE exporters can effectively access these benefits.

Additionally, India reiterated its request to classify the Indian Jewellery Exposition Center in Dubai as a designated zone, enabling Indian jewellery manufacturers to benefit from concessional duties.

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"On issues related to the trade in services matter, the two sides exchanged focal points and agreed to hold the First Sub-Committee Meeting at the earliest," the statement said.

"The Indian side highlighted the need for professional bodies from both sides to enter into Mutual Recognition Agreements that would enable professionals like chartered accountants, lawyers, nurses, etc. to provide their services without the need for another certification. Both sides agreed to work on an actionable plan in this regard," it added.

India also raised concerns about a recent surge in imports of silver products, platinum alloys, and dry dates from the UAE, urging verification of compliance with rules of origin norms to prevent circumvention.

The bilateral trade between India and the UAE has experienced remarkable growth, increasing to $83.6 billion in 2023-2024 from $59.5 billion in 2013-2014. 

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At present, crude oil and petroleum products account for more than a third of imports from the UAE. 

The Comprehensive Economic Partnership Agreement, signed in 2022, has played a crucial role in this growth by reducing trade barriers and encouraging investment.