Trade Agreements between India and UAE: An Overview

The United Arab Emirates (UAE) and India are important trading partners, with a long-standing history of bilateral trade and economic relations. The two countries have signed several trade agreements and memorandums of understanding (MoUs) to enhance business relations and facilitate trade and investment between the two nations. In this article, we will discuss some of the significant trade agreements between India and UAE.

Comprehensive Economic Partnership Agreement (CEPA)

In 2021, the UAE and India signed a Comprehensive Economic Partnership Agreement (CEPA) to enhance bilateral trade and investment relations. The agreement aims to increase trade in goods and services, facilitate investment flows, and promote cooperation in areas of mutual interest. The CEPA is expected to boost the bilateral trade between the two countries to USD 100 billion by 2030.

Double Taxation Avoidance Agreement (DTAA)

The UAE and India have also signed a Double Taxation Avoidance Agreement (DTAA) to avoid double taxation of income and capital gains earned by individuals and businesses in both countries. The agreement provides relief from double taxation on income earned in one country by a resident of the other country. The DTAA also facilitates investment flows and promotes economic cooperation.

Bilateral Investment Promotion and Protection Agreement (BIPA)

The UAE and India have signed a Bilateral Investment Promotion and Protection Agreement (BIPA) to promote and protect mutual investments between the two countries. The BIPA provides a framework for investment protection, including the protection of intellectual property rights, fair and equitable treatment, and dispute resolution. The agreement aims to attract more investment in sectors such as infrastructure, energy, and technology.

Free Trade Agreement (FTA)

The UAE and India are exploring the possibility of signing a Free Trade Agreement (FTA) to enhance trade and investment relations further. An FTA would eliminate tariffs, non-tariff barriers and increase market access for goods and services traded between the two countries. The FTA would also promote economic cooperation in sectors such as agriculture, textiles, and pharmaceuticals.

Conclusion

India and UAE have a long-standing history of bilateral trade and economic relations. The two countries have signed several trade agreements and MoUs to enhance business relations and facilitate trade and investment. These agreements aim to increase trade in goods and services, facilitate investment flows, promote economic cooperation, and provide a framework for investment protection. With the signing of the CEPA in 2021, the bilateral trade between India and UAE is expected to reach new heights, promoting economic growth and development in both countries.