In the first year of coming into effect of the Comprehensive Economic Partnership Agreement (CEPA), 54,144 certificates of origin were issued between May 2022-March 2023 only next to 1.49 lakh under the India-Asean FTA.
“We are hoping that we would be able to reach $50 billion exports by 2026-27,” Barthwal said, adding that trade between the two countries has gone beyond normal growth for both exports and imports and labour-intensive sectors have seen significant growth.
India’s exports to the UAE in 2022-23 rose by 11.8% to $31.3 billion, while imports grew by 18.8% to $53.2 billion in the last fiscal.
Non-oil imports rose 4.1% in FY23.
Iron and steel exports to the UAE dropped 36% on-year in FY23.
India’s exports of essential oils, automobiles, mineral oils, electrical equipment, cereals, perfumery and cosmetic preparations were the biggest gainers in the pact.Imports of aircraft, spacecraft, and parts rose a whopping 4,859% on-year to $1.93 billion in FY23.
“UAE is a transit hub and the increase is part of the normal most favoured nation (tariffs),” said an official.
Gold imports declined in FY23 due to non-utilisation of the full quota of tariff available under the CEPA.
“With the DGFT opening a fresh window of gold tariff rate quota, the gold imports from UAE should go up,” he said.
India announced that it will open a fresh window for the import of 140 MT of gold in FY24 at concessional duty from the UAE through an import quota system.
Sources said that the meeting of the joint working group will be held in June to discuss the exchange of data between customs of India and the UAE, and also review the trade data under the CEPA.