Commerce Secretary BVR Subrahmanyam handed out Certificates of Origin to three gems and jewellery exporters here in a symbolic gesture to put the agreement into action.

 

Under the accord, which is technically known as the Comprehensive Economic Partnership Agreement, these shipments to Dubai will be exempt from customs charges (CEPA).

 

The Central Board of Indirect Taxes and Customs (CBIC) and the Directorate General of Foreign Trade (DGFT) have published notices in preparation for the agreement's implementation on May 1.

 

'CEPA between India and the UAE enters into force now. We are sending the first shipment from India to the UAE, which will profit from this deal, currently' Subrahmanyam stated here.

 

According to him, the UAE is India's second or third largest commercial partner, and the nation serves as a gateway to the Middle East, North Africa, Central Asia, and Sub-Saharan Africa.

 

The trade agreement will aid in increasing two-way trade from USD 60 billion to USD 100 billion in five years.

 

'USD 100 billion is only the beginning.' 'As time goes on, it will grow to USD 200 billion, and eventually to USD 500 billion in the coming years,' the secretary said, adding that 99 percent of 'our exports will go to zero duty in the UAE.'

 

Overall, India will benefit from the UAE's preferential market access on more than 97% of its tariff lines (or goods), which account for 99 percent of Indian exports to the UAE in value terms – particularly in labor-intensive sectors such as textiles, leather, footwear, sports goods, plastics, furniture, and engineering products.

 

The secretary emphasized the need of building and augmenting local capacities in order for Indian products to be competitive in the international market.

 

According to Subrahmanyam, exports of products and services account for roughly 22-23 percent of India's GDP.

 

'Our aim is to get India to the stage where exports account for 25-30% of GDP,' he continued.

 

He underlined that the Department of Commerce has also been fortifying itself in order to be future-ready and handle the challenges of tomorrow, with an emphasis on trade promotion.

 

'We will restructure the department.' You will alter in the next months. 'We will be establishing a massive trade promotion arm,' the secretary said, adding that data, data analytics, and market intelligence will also be prioritized.

 

Concerning trade deals, he stated that they are two-way transactions in which both parties should feel as though they have received something.

 

'We intend to summarise and simplify the agreement (with the UAE for the industry) and put them in easy packages so that everyone understands where I would profit if I go through this FTA.' We will do so by the end of May,' he continued.