Context: India and the United Arab Emirates (UAE) convened the third Joint Committee Meeting under the Comprehensive Economic Partnership Agreement (CEPA) in New Delhi. The meeting reviewed CEPA’s progress since its signing in 2022 and outlined measures to deepen economic, regulatory, and strategic cooperation.
About CEPA
The India–UAE CEPA, signed in 2022, is India’s first comprehensive economic partnership agreement with any West Asian nation. It aims to:
- Liberalise trade in goods and services
- Boost investments
- Reduce tariff barriers
- Facilitate customs cooperation
- Strengthen supply-chain connectivity
The India–UAE Joint Commission is the institutional mechanism responsible for monitoring implementation and ensuring alignment with CEPA objectives.
Key Outcomes of the Third CEPA Joint Committee Meeting
1. Non-Oil Trade Target
Both countries reaffirmed their commitment to achieving USD 100 billion in non-oil, non-precious metal trade by 2030. This target aligns with CEPA’s goal of diversifying economic relations beyond hydrocarbons and gold.
2. Competitive Bidding for Gold TRQ
India informed the UAE of its new online competitive bidding system for Gold Tariff Rate Quota (TRQ) allocations under CEPA.
- A TRQ allows a specified quantity of imports at a lower or zero tariff.
- This mechanism is expected to make gold imports more transparent and predictable for industry stakeholders.
3. Regulatory and Sectoral Cooperation
The discussions covered:
- Pharmaceutical trade facilitation, including faster regulatory approvals
- Early signing of the Food Safety MoU to harmonise SPS (sanitary and phytosanitary) standards
- Anti-dumping discussions, aimed at preventing market distortions and ensuring fair trade
Together, these measures aim to reduce non-tariff barriers and strengthen sector-specific value chains.
India–UAE Bilateral Relations
1. Trade Relations
- UAE is India’s third-largest trading partner and second-largest export destination.
- Bilateral trade crossed USD 100 billion in FY 2024–25, growing 19.6% year-on-year.
2. Investment Cooperation
- UAE sovereign wealth funds have committed USD 75 billion for Indian infrastructure.
- The Bilateral Investment Treaty (BIT) 2024 strengthens investor confidence and long-term capital flow.
3. Energy Security
- UAE is India’s fourth-largest crude oil supplier.
- It is the only country storing crude oil in India’s Strategic Petroleum Reserves (SPRs), strengthening supply security.
4. Defence and Security
- Defence cooperation includes high-level exchanges, joint exercises like Desert Cyclone and Zayed Talwar, and maritime security collaboration in the Indian Ocean Region.
5. Climate Partnership
- India and UAE jointly launched the Global Green Credit Initiative (GGCI) to promote international climate stewardship and sustainable practices.
6. Diaspora and Culture
- The UAE hosts 3.5 million Indians, forming its largest expatriate community.
- The inauguration of the BAPS Hindu Temple in Abu Dhabi represents a milestone in cultural diplomacy.
Conclusion
The third CEPA Joint Committee meeting reinforces India–UAE relations as one of the most dynamic bilateral partnerships in the Indo-West Asian region.
With deeper trade integration, regulatory harmonisation, major infrastructure investments, and strong diaspora linkages, the relationship is poised to evolve into a comprehensive strategic and economic partnership aligned with India’s long-term global trade goals.