Trade Sector Updates – Falling Exports, TIES, MEIS, Foreign Trade Policy, etc.

UAE to review India’s concerns on surge in Silver, Platinum Alloy imports

Prelims Only | International Relations | Mains Paper 2: Bilateral, Regional and Global Groupings and agreements involving India
Note4Students

From UPSC perspective, the following things are important :

Prelims level: India-UAE CEPA

Why in the News?

India has raised concerns over the increase in imports of silver products, platinum alloy, and dry dates from the UAE under the Free Trade Agreement (FTA).

Issues Raised by India:

  • The Global Trade Research Initiative (GTRI) has called for an urgent review of the India-UAE CEPA, citing concerns that the agreement allows unlimited imports of gold, silver, platinum, and diamonds with zero tariffs.
  • GTRI claims that many of these imports do not meet Rules of Origin requirements and thus should not qualify for concessions.
    • India’s gold and silver imports from the UAE increased by 210% to $10.7 billion in 2023-24.
    • India allows customs duty concessions of 7% on silver and 1% on 160 metric tonnes of gold under the agreement.
  • India also requested that the Indian Jewellery Exposition Centre in Dubai be classified as a Designated Zone to allow domestic jewellery manufacturers to benefit from concessional duties, including those not registered under UAE’s domestic regulations.
  • India also requested the UAE to grant recognition to the i-CAS (India Conformity Assessment Scheme) Halal scheme to simplify the certification process and boost exports of animal products.
  • The UAE expressed its willingness to review this request after consulting internal stakeholders, including federal tax authorities.

India-UAE Trade Relations:

Details
Volume • The UAE is India’s 3rd largest trading partner with $83.65 billion in bilateral trade in 2023-24.
• Trade between India and UAE grew from $180 million in the 1970s to $85 billion in 2022-23.
Comprehensive Economic Partnership Agreement (CEPA) • Signed in February 2022, making India the first country to sign such an agreement with the UAE.
• CEPA has slashed tariffs on 80% of goods and offers zero duty access to 90% of Indian exports to the UAE.
Non-Oil Trade Target • The target of reaching $100 billion in non-oil trade by 2030 is seen as achievable given current growth trends.
Investment from UAE • UAE’s investments in India are around $20-21 billion, with $15.5 billion as Foreign Direct Investment (FDI).
• The Abu Dhabi Investment Authority (ADIA) has invested in projects like the NIIF Master Fund and renewable energy initiatives.
India’s Exports to UAE • UAE is India’s 2nd largest export destination after the US, with exports worth $31.61 billion in 2022-23.
• Key exports include petroleum products, gems, food items, textiles, and engineering goods.
India’s Imports from UAE • UAE is a critical partner for India’s energy security.
• India imports petroleum, gems, minerals, and chemicals from UAE.
• UAE is India’s 4th largest crude oil supplier and 2nd largest for LNG and LPG.

 

PYQ:

[2022] How will I2U2 (India, Israel, UAE and USA) grouping transform India’s position in global politics? 

Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024

Attend Now

Subscribe
Notify of
0 Comments
Inline Feedbacks
View all comments

JOIN THE COMMUNITY

Join us across Social Media platforms.

💥Mentorship New Batch Launch
Click Here
💥Mentorship New Batch Launch
Click