Strengthening Economic Ties: India and UAE’s Collaborative Vision for Trade and Growth

 The second CEPA Joint Committee meeting between India and the UAE underscores the growing significance of economic diplomacy in shaping modern trade relations. As highlighted in the discussions, the focus on enhancing bilateral trade, improving data sharing, and resolving key issues signals a shared commitment to fostering deeper collaboration. The establishment of a technical group to streamline trade data and the revision of Tariff Rate Quotas (TRQs) for specific products reflect a pragmatic approach to maximizing mutual benefits.

India’s push for designating the Indian Jewellery Exposition Centre in Dubai as a "Designated Zone" demonstrates its ambition to leverage UAE’s strategic location for expanding its jewellery trade. This move could offer Indian manufacturers a significant boost, particularly with concessional duties at play. The UAE’s openness to consider this proposal reflects the willingness of both nations to explore innovative solutions to unlock new economic opportunities.

Moreover, the discussion around the i-CAS Halal scheme, pharmaceutical registration, and food safety marks an essential step toward ensuring that non-tariff barriers do not hinder trade. These are vital sectors, and India’s efforts to streamline procedures for animal product exports and pharmaceuticals signal a long-term vision of greater market access in the UAE. The potential agreement on Sanitary and Phytosanitary (SPS) measures and Technical Barriers to Trade (TBT) will likely play a critical role in further easing the flow of goods and services.

The talks on Mutual Recognition Agreements (MRAs) for professionals, such as chartered accountants and nurses, could unlock opportunities in services trade, which has traditionally been a strong area for India. Such agreements would enable professionals to work across borders without needing additional certification, a vital step in promoting ease of service exchange.

However, India’s concerns over rising imports of certain products such as silver, platinum, and dry dates reflect the challenges of managing complex trade dynamics, where rules of origin compliance must be vigilantly upheld to avoid circumvention. The UAE’s agreement to investigate these issues is a positive sign of responsible trade governance.

In essence, the India-UAE relationship continues to evolve beyond traditional trade, with a growing emphasis on collaboration in services, technology, and data harmonization. The outcomes of this meeting highlight not only the potential for mutual gains but also the challenges that remain. As both nations look to expand their economic footprint, sustained engagement through mechanisms like CEPA will be crucial in realizing their ambitious goals, such as the USD 100 billion non-oil trade target by 2030.

This meeting is a testament to the dynamic and forward-looking partnership between India and the UAE, one that is underpinned by a shared vision of economic growth and cooperation in an increasingly interconnected global economy.