Why in the News?

India is seeking a review of certain provisions of the free trade agreement (FTA) with the UAE, which came into force on May 1, 2022.

India-UAE Trade Relations: An Overview

The UAE is the 3rd largest trading partner of India, with bilateral trade amounting to USD 83.65 billion in 2023-24.
The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE covers various aspects, including value addition norms and customs duty reduction.

There has been a significant increase in imports of precious metals from the UAE under the trade agreement.
Global Trade Research Initiative (GTRI) has raised concerns about the spurt in imports of gold, silver, platinum, and diamonds with zero tariffs in the coming years.
GTRI’s report highlights potential revenue losses and a shift in import business from banks to private traders, favouring Dubai-based firms.
It also claims that many imports do not meet the Rules of Origin conditions, making them ineligible for concessions.

When asked about the review of the new authorisation regime for monitoring imports of certain IT hardware products, Barthwal indicated that the government would make a decision at the appropriate time.
The government had previously adjusted import restrictions on laptops and computers, allowing importers to bring in shipments under an ‘authorisation’ system until September.