With further use of Comprehensive Economic Partnership Agreement, exports likely to increase, says Commerce Ministry
With further use of Comprehensive Economic Partnership Agreement, exports likely to increase, says Commerce Ministry
India’s non-oil exports to the UAE have grown 14% between June and August, the Commerce and Industry Ministry said on Sunday, attributing the uptick to the bilateral trade deal between the two nations that came into effect this May.
India’s global non-petroleum exports during the same period grew by just 3% on a year-on-year basis, the Ministry said, seeking to emphasise the much higher growth in such exports to the UAE which were at $5.92 billion compared to $5.17 billion a year ago.
“Excluding petroleum related imports, Indian imports from the UAE during the same three-month period grew by 1% to $5.61 billion,” the Ministry noted, adding that oil trade were not considered for this analysis for two reasons.
“…Import increase in oil/petroleum products is largely on account of the rise in global prices and to a certain extent on an increase offtake in volumes. Further, it is pertinent to mention that bulk of the oil imports from the UAE are of Crude Petroleum, the demand for which is inelastic and the customs duty for which is very low,” it explained.
The sharpest jump in Indian exports to UAE over this period was seen in sugar (up 237%), cereals (161%), vegetables (82%), inorganic chemicals (74%) and electrical machinery and equipment (67%).
The Commerce Ministry said it expects Indian exports to increase further in the coming months with increasing use of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) by exporters and a series of trade promotion events planned in the UAE during 2022-23.
