Duty concessions soon on textiles, apparel, jewellery, engineering goods, food products.
United Arab Emirates (UAE) could once again become India’s largest apparel market, following the signing of the free trade agreement between the two countries. India may get duty concessions on textiles and apparel, gold jewellery, engineering goods, food products, and other labour-intensive sectors under the free trade agreement (FTA) with the UAE.
The deal will not only boost India’s exports, but also facilitate easier movement of Indian workers and professionals to the UAE. It is also expected to give Indian industry access to other markets in the region.
The FTA negotiations had started in September 2021. Engineering exports to the UAE are expected to double in the next five years from the current US$ 4-5 billion and create 100,000 jobs on account of tariff concessions.
India’s exports to the UAE grew by 77% year-on-year in April-December 2021 to US$ 20 billion, accounting for 6.6% of India’s total outbound shipments.
Experts said the deal is expected to boost job creation and economic growth, provide cheaper products to Indian consumers and lead to lower input costs for many products.