Following the start of a free trade deal between the two nations last year, India’s non-oil exports to the United Arab Emirates (UAE) increased by 5% to $ 15 billion between June 2022 and this January, according to a government official in India.
On the condition of anonymity, the official told reporters that exports to the UAE are projected to reach $31 billion this fiscal year, with gem and jewellery exports, industrial exports, and auto exports leading the way.
The official noted that between June 2022 and January of this year, exports of electrical gear and diamonds and jewellery increased by 16% and 29% to $3.8 billion and $2.6 billion, respectively. Shipments of cars increased by 38% to $475 million during the same time. The exports of edible vegetables, coffee, tea, spices, sugar, and man-made staple fibres all saw good increase. the representative added. A continuous rise in the quantity of Certificates of Origin (CoO) issued to Indian exporters as a result of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which took effect on May 1, portends higher shipments in the coming months. For bilateral FTAs, CoOs are required in order to claim duty reductions, and they could take some time before actual shipments happen. Exporters received as many as 6,057 certificates of origin in January, a substantial increase from 415 in May. The person stated that technical teams are working on the procedures and that the central banks of both nations are exploring the potential of rupee-dirham exchange. He said nothing further.