Context:

The emergence of the UAE as India’s third-largest trading partner has only underlined the positive outlook the two countries share towards economic cooperation.

India-UAE Economic Partnership:

• Historical context: The India-UAE partnership was initially based on the trade of traditional items, which later expanded to include oil.
• Formalization: The partnership gained a formal dimension after the creation of the UAE Federation in 1971.
  1. The partnership accelerated in the 1990s, when India embraced economic liberalization and began exporting to the UAE and beyond.

About Comprehensive Economic Partnership Agreement (CEPA):

• The historical India-UAE CEPA was signed on February 18, 2022 during the virtual summit attended by Indian Prime Minister Narendra Modi and President of the UAE Sheikh Mohamed bin Zayed Al Nahyan.
• It entered into force on May 1 2022.

Success of the UAE-India CEPA:

• Building on mutual enterprise: The CEPA builds on decades of mutual enterprise and marks a new chapter in the shared history of India and the UAE.
• Increased trade volumes and market access: The CEPA has unlocked greater trade volumes and improved mutual access to markets, stimulating economic, industrial, and investment opportunities.
• Impressive results: A year since its implementation, the CEPA has been a success with non-oil trade almost hitting $50 billion in 2022 and growth of about 10%.
• Entrepreneurship and innovation: The CEPA is unleashing the spirit of entrepreneurship in both countries, inspiring innovators, and catalysing SMEs, startups, and India Inc to make inroads into new markets.
• Addressing developmental challenges: The CEPA is a strategic catalyst in addressing vital developmental challenges, giving a trade lens to issues like energy and food security, agriculture, and sustainability.
• Cultural cooperation: The UAE and India have signed MoUs for academic and cultural cooperation, further strengthening their partnership.
  • The UAE looks forward to the opening of the IIT-Delhi campus in Abu Dhabi next year.
• Cooperation is visible in the Entertainment Sector: More recently, the Louvre Abu Dhabi paid homage to Bollywood by unveiling its first exhibition of the year — ‘Bollywood Superstars: A Short Story of Indian Cinema’.

Bundle of Opportunities:

• It is an opportune moment, in particular, for India’s dynamic startup ecosystem to explore growth and diversification into the Emirati market, and from there to the Middle East, Africa, and Europe. 
• The India-UAE Startup Bridge will also enable them to attract investment from venture capitalists and angel investors. 
• The corridor will further CEPA’s vision for startups and embolden them to scale and strengthen their position in the global market.

Conclusion:

Seen together, these initiatives give a glimpse of the deal’s fullest role — as the heart of strategic alignments and common interests, leading our nations to build competitive, resilient, sustainable and vibrant economies.

News Source: The Indian Express