According to an official, UAE Economy Minister Abdulla bin Touq Al Marri will head a high-level business delegation to India this week to examine ways to enhance trade and investment between the two countries.
The visit, which will take place from May 11 to 15, is significant because both countries signed the Comprehensive Economic Partnership Agreement (Cepa) on May 1.
The team also includes the UAE Minister of State for Entrepreneurship and Small and Medium Enterprises, Dr. Ahmad Belhoul Al Falasi.
“It will be a significant visit because the free trade agreement has been implemented,” the person said. Cepa expects bilateral trade to increase to $100 billion in the next five years, up from $60 billion now.
The agreement, which took effect on May 1, will aid India, a long-time UAE trade partner, in promoting the ‘Make in India; Market to the World’ initiative and encouraging OEM jewellery manufacturing in the country for global brands, as well as increasing jewellery exports and providing employment and skill development opportunities, according to Ahmad.
On May 3, heads of the private sector gold business in the UAE received the first consignment of jewellery that India shipped to the UAE under the Cepa. According to Sanjay Sudhi, Indian Ambassador to the UAE, the cargo of three containers contained around $1 million worth of rare jewels and jewellery.
BVR Subrahmanyam, the commerce secretary, identified the first shipment from New Delhi at zero duty. Prior to the establishment of the CEPA, imports were subject to a 5% tariff.
India imports 800 tonnes of gold per year, according to Subramanyam. According to the CEPA, India has set a tariff quota of 200 tonnes for the UAE. Tariffs will be 1.0 percent lower in perpetuity than tariffs charged by the rest of the world or on a most favoured nation basis.
