New Delhi, Feb 20 (Agency) The India-UAE free trade agreement will provide major fillip to the engineering goods exports as a result of lowering of duty on most items, Engineering Export Promotion Council (EEPC) of India said on Saturday. On the back of duty concessions, the engineering exports are expected to grow by 10 per cent in the first two years and then average by about 15 per cent in the next three years, EEPC India Chairman Mahesh Desai said.
He further said higher export growth would mean substantial rise in investment and job creation given that the sector is largely labour-intensive. “The India-UAE Comprehensive Economic Partnership Agreement (CEPA) was concluded in record time and shows deep commitment of the government to facilitate trade and business. The UAE has been the third largest export destination for engineering items despite the constraint of average 5 per cent import duty on them. With the duty now coming down to ‘zero’ we see the share of engineering goods in UAE’s total import increasing at a fast pace,” Mr Desai said.
“Given the geographical location of the UAE, its proximity to central Asia, Africa and other Gulf countries, the free trade agreement will help India expand its businesses in those regions also. The FTA, therefore, along with the other benefits will act as a gateway for India in expanding businesses in the Gulf region, Central Asia and a part of Africa,” he added. Mr Desai hoped that the India-UAE CEPA would act as template for free trade pacts with GCC countries as this will lead to mutually gainful advantages for both the sides. During April-January 2021-22, engineering exports to UAE recorded a sizeable 148.4 percent rise to US$ 4,609.78 million from US$ 1,855.83 million in the same period last fiscal.