India, UAE comprehensive trade pact: 1.4 lakhs job visa for qualified Indians
The agreement will herald a new age in India-UAE finacial ties, says PM Modi
New Delhi: India and the United Arab Emirates (UAE) signed a bilateral “comprehensive” trade pact on Friday. Announcing the Comprehensive Economic Partnership Agreement (CEPA), the biggest trade pact of the last seven years, Prime Minister Narendra Modi welcomed investment from the Gulf country into Jammu and Kashmir and said the initiative would open new routes for regional trade and connectivity and advance “collective interests” of India, Israel, the UAE and the United States. Commerce and Industry Minister Piyush Goyal said the CEPA would have strong anti-dumping measures.
“The deal will open up to 10 lakh jobs for the young people in the country,” said Mr. Goyal. UAE will provide 1.4 lakhs job visas for educated Indians within 7 years.
Official sources informed that the pact would open access to broader African and Asian markets for India. They argued that the “substantial net gains for India” will be visible in the labour-intensive industries such as gems and jewellery, leather, furniture, wood products, agriculture, medical devices, pharma and automobiles. The pact, the sources said, would help boost trade over goods to $100 billion over five years.
“This agreement will herald a new age in our financial relations. Our trade in the next five years will increase from $60 billion to $100 billion,” said Mr. Modi, thanking Crown Prince of Abu Dhabi Sheikh Mohamed bin Zayed Al Nahyan who participated in the summit virtually.
Collective goals
“Both our countries have been working with partners with similar ideas. I am confident that the grouping of ‘India-UAE-Israel-USA’ will advance our collective goals, especially in the fields of technology, innovation and finance,” Mr. Modi said announcing the broader contours of the trade deal. He strongly condemned the January 17 terror attack on the UAE that claimed the lives of two Indian nationals. “We will stand shoulder to shoulder with the UAE in the fight against terrorism,” assured the Prime Minister.
During the virtual summit meeting, a Memorandum of Understanding (MoU) was signed between the International Financial Services Centers Authority (IFSCA), GIFT City and the Abu Dhabi Global Market Financial Services Regulatory Authority (FSRA). Another MoU covered building of food corridors. “The MoU on food corridors is a very good initiative. We welcome investment from the UAE into food processing and logistics sectors,” said Mr. Modi. Informed sources said the deal would cover 90% of India’s exports to the UAE. Indian exports are expected to benefit from the “zero duty from day one of the entry into force of the agreement”.
