Vijayawada: The Ambassador of the United Arab Emirates to India, Abdulnasser Alshaali, said here on Thursday that bilateral trade between the Middle Eastern country and India rose by 15 per cent to USD 83.6 billion in fiscal 2023-24, powered by the Comprehensive Economic Partnership Agreement. Alshaali noted that the deal inked in May 2022 propelled trade from USD 73 billion in FY 2021-22 to USD 83.6 billion by streamlining trade processes, reducing tariffs and creating more robust pathways for businesses to operate across borders.
“The positive impact of the Comprehensive Economic Partnership Agreement (CEPA) is highly visible when considering the growth in bilateral trade between the UAE and India…This is a significant achievement that underlines the transformative benefits of the CEPA and the strong prospects for further growth in the UAE-India economic partnership,” Alshaali said in an interaction with reporters.
According to the Ambassador, UAE has set a target to achieve USD 100 billion worth of non-oil bilateral trade with India by 2030.
Facilitated by the CEPA, he observed that the South Asian country’s gems and jewellery, pharmaceuticals and fruits and vegetables exports to UAE rose massively, recording a growth rate of 64 per cent, 39 per cent and 35 per cent respectively.
Terming CEPA as only the beginning, the Ambassador said there is considerable potential to further enhance trade ties and added that the UAE is eliminating tariffs on a total of 7,581 Indian products in the coming years.
Alshaali said these products account for 99 per cent of India’s exports to the UAE in terms of value and added that tariffs were already eliminated for over 80 per cent of India’s total exports to the UAE.
Also, Alshaali said CEPA-driven trade optimisation proved beneficial to Indian startups and SMEs, which are now able to access newer markets with greater ease.
The Ambassador also highlighted that several UAE companies were capitalising on the bilateral trade deal to enter the Indian market, especially in the fields of construction, energy and retail.
On Thursday, the envoy participated in the UAE-Andhra Pradesh Economic and Investment Roundtable in Vijayawada, which featured the state Industries Minister TG Bharat and over 10 companies from the Middle Eastern country such as Emaar, DP World, Tabreed, Aramex and others.
Further, Alshaali said the UAE is interested in supporting the Indian aviation sector as a partner for its continued growth and development rather than a competitor.
UAE’s flagship carrier Emirates is the largest airline in the Middle East.
Alshaali said India’s airports have the ability and capacity to handle more numbers of passengers than current passenger volumes.
Moreover, he observed that large-scale integration of rupee in bilateral trade takes time as it cannot happen quickly, considering the technicalities and systems involved.
Delving on the relationship between UAE and Andhra Pradesh, the envoy observed that the southern state is not ranked as it should be in trade with the Middle Eastern country.
For a state like Andhra Pradesh, which is at the 11th position, Alshaali emphasised that resilient hospitality and aviation sectors are key to set up a welcoming ecosystem, and the UAE is keen to facilitate further development in these areas.
He said UAE has a vision for the aviation industry in Andhra Pradesh, highlighting that weekly flights to the state can be easily enhanced by 35 to raise annual passenger traffic to five lakh between the two countries.
The senior diplomat identified the three cities of Tirupati, Vizag and Vijayawada as key for achieving these aviation milestones.
On the possibility of UAE playing a role in greenfield capital Amaravati, Alshaali said robust connectivity, real estate and hospitality are pivotal.
Further, he highlighted that the Middle Eastern country is looking forward to partnering with Andhra Pradesh in every sector possible without limitations to any industry.
Recognising Andhra Pradesh as the fastest growing state in India, the envoy noted that his visit is meant to explore how UAE can further expand economic, investment and people-to-people ties with the state.
On Wednesday, Alshaali called on Chief Minister N Chandrababu Naidu.
Trade between Andhra Pradesh and UAE reached USD 1.4 billion in FY 2023-24 while the latter invested over USD 9 million in the southern state between October 2019 and June 2023.
