new Delhi. India can sign a Free Trade Agreement (FTA) with the United Arab Emirates (UAE) on Friday. With this agreement, India can get concessions in taxes in the UAE in the export of gold jewellery, engineering goods, textiles, apparel, food products and other labor intensive sectors. The agreement is likely to be finalized at a virtual summit between Prime Minister Narendra Modi and Abu Dhabi’s Crown Prince Sheikh Mohamed bin Zayed Al Nahyan on Friday.
This is the first major free trade agreement under the Comprehensive Economic Partnership Agreement (CEPA) during the tenure of the BJP-led central government. With this agreement, India’s gems and jewellery, engineering goods and food products exports will get a boost, as well as it will also be easier for Indian workers and professionals to go to the UAE. In this way employment opportunities will increase. Apart from this, it will also help the Indian industry to reach out to other markets of the Arab world.
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Engineering exports to double in five years
With this agreement between India and the UAE, India’s engineering goods exports are expected to double in the next five years. It is also likely to create 1 lakh jobs. Engineering exports currently stand at $4-5 billion. India’s exports to the UAE grew by 77 per cent to $20 billion in the December quarter on an annual basis. The share of UAE in India’s total exports is 6.6%.
Gems and jewelery exports will get oxygen
Gems and jewelery exported to UAE have declined in the last few days. If this agreement gives tax exemption on gold, silver and platinum jewellery, then there can be a huge jump in gems and jewelery exports. The UAE accounts for 80 per cent of India’s total exports of plain gold jewellery. The UAE accounts for 20 per cent of the total studded jewelery exports. Gems and Jewelery Export Promotion Council (GJEPC) says that between April 2021 and January 2022, Gems and Jewelery Exports to the UAE declined by 41.50 percent on an annual basis. Is.
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Export possible to UK and EU
ICRIER Professor Arpita Mukherjee told Live Mint that India’s gems and jewelery engineering goods and sectors like textiles and apparels are dependent on exports. If there is an agreement, then India will get new markets, which will greatly benefit these regions. Apart from this, it can also be exported from UAE to England and European Union. Whereas some things from India cannot be directly exported to England, European Union and Australia.
Tags: business, PM Narendra Modi, UAE
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