Page 22 - Plastics News March 2022

India UAE Opens New Window of Opportunity
With India and UAE signing new free trade deal at the recent virtual summit it is being seen to open plethora of op-
portunities at both end as the deal is expected to double trade to $100 billion over 5yrs
vestors in establishing specialised indus-
trial advanced technology zones in Abu
Dhabi, with a focus on logistics and ser-
vices, pharmaceuticals, medical devices,
agriculture, agri-tech, and steel and alu-
minium. India and the UAE will also
take steps to enhance the resilience and
reliability of food supply chains. They
agreed to expand cooperation through
enhanced bilateral food and agriculture
trade and to strengthen the infrastruc-
ture and dedicated logistic services con-
necting Indian farms to ports and the
final destinations in the UAE.
The two sides further agreed to collabo-
rate in research, production and devel-
ndia and the United Arab Emirates level of $60 billion to $100 billion in the opment of reliable supply chains for vac-
I(UAE) has recently signed a free trade next five years, it said. cines and enhance investments by UAE
pact that is expected to almost double Two memorandums of understand- entities in India’s health infrastructure.
two-way trade to $100 billion in the ing (MoUs) signed between Indian and The two sides also agreed on establishing
next five years during a virtual summit UAE entities were announced at the an Indian Institute of Technology in the
between Prime Minister Narendra Modi summit – a MoU between Agricultural UAE. Nine broad sectors that account
and Abu Dhabi Crown Prince Sheikh and Processed Food Products Export for 90% of India’s exports, in terms of
Mohammed bin Zayed Al Nahyan. The Development Authority (APEDA) and value, to the UAE will get immediate
two sides issued a joint vision statement DP World & Al Dahra for a food secu- market access at zero duty from the day
that outlined the future course of rela- rity corridor initiative and another be- the CEPA is enforced. These sectors are
tions and highlighted areas of focus, in- tween India’s Gift City and Abu Dhabi textiles, engineering products, gems and
cluding enhanced maritime cooperation Global Market on cooperation in finan- jewellery, pharmaceuticals and medical
and joint steps to fight terrorism and cial projects and services. According to devices, plastics, automobiles, leather
measures to boost trade and investment. the joint vision statement, the two sides and footwear, agricultural products and
The negotiation process for the compre- agreed to enhance maritime cooperation other labour-intensive products such
hensive economic partnership agreement to maintain peace and security in the re- as furniture, wood products and sports
(CEPA), which was signed by commerce gion, and reaffirmed their joint commit- goods.
minister Piyush Goyal and UAE’s econo- ment to fight extremism and all forms of “All the above sectors are highly labour-
my minister Abdulla bin Touq Al Marri, terrorism, including cross-border terror- intensive and the agreement will not
was one of the shortest in recent years. ism, at regional and international levels. only boost exports in terms of value,
The two sides began work on the pact In the economic field, the two sides will but also create jobs,” an official said. Ac-
in September last year and it was final- expedite work on a dedicated investment cording to the CEPA, zero duty will be
ised in a little more than three months. zone for UAE companies and joint ven- extended to another half-a-dozen sectors
The agreement will provide significant tures with a focus on setting up a food comprising 9% of India’s exports within
benefits to Indian and UAE businesses, corridor and establishing a dedicated five to 10 years, the official said. These
including enhanced market access and “India Mart” in Jebel Ali Free Zone in products are electronic goods, chemicals
reduced tariffs, according to an official Dubai. and petrochemicals, articles of stone, ce-
statement. The CEPA is expected to in- The two sides will also work to create ment, ceramics and machinery. Accord-
crease bilateral trade from the current investment opportunities for Indian in- ing to the official, zero duty on textiles

22 PLASTICS NEWS March 2022