As 2022 comes to an end, a new trade agreement signed between India and UAE, Australia has left multiple export promotion councils hopeful of the upcoming trade opportunities. The new agreement gives Indian products preferential access to these markets.
The India-Australia Economic Cooperation and Trade Agreement (ECTA) came into force on December 29, 2022. President of the Federation of Indian Export Organisations (FIEO), A Sakthivel, extended his gratitude to the Hon’ble Prime Minister of India, Shri Narendra Modi and Commerce and Industry Minister Piyush Goyal for closing this deal. He believes the Ind-Aus ECTA will cement the relationship between the two nations.
Furthermore, he added that the export of Indian goods will rise from USD 6.9 billion in 2021 to USD 15 billion in 2025. The numbers for services will rise up to USD 10 billion from USD 3.9 billion. Owing to this deal, it is estimated that 10 lakh new job opportunities will be generated in India. B D Agarwal, eastern regional chairman of the Engineering Exports Promotion Council (EEPC), opines that the ECTA will allow zero duty on 100 per cent tariff lines and provide cheaper raw materials to steel and aluminium sectors.
However, the trade developments in India were not only limited to Australia. The country has also carved a partnership agreement with UAE, another important export market. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) became effective on May 1, 2022. Since then, several developments have been reported between the export-import of these two countries.
Post the India-UAE CEPA in May, gems and jewellery exports between the regions witnessed an overall export growth of 20 per cent. Additionally, the import duty applicable in the UAE on 260 plastic products has been reduced from 5 per cent to zero with immediate effect.
EEPC chairman also says that after the Ind-UAE CEPA, India has benefited from preferential market access that UAE provided on over 97 per cent of its tariff lines which account for 99 per cent of Indian exports in terms of value.
As India envisages emerging as a trade and commerce hub with sustainable economic stability, the Ind-UAE CEPA and Ind-Aus ECTA will go to great lengths to realise this goal. The export revenue will not only help in creating a surplus in the balance of the trade account but also give rise to several job opportunities. It is imperative for India to crack such trade agreements and deal with other nations with potential markets if they want to attain their goals.
New trade agreements to boost exports between India, Australia, and UAE
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