Free Trade Agreement: India's exports worth $26 billion to UAE to get 5% duty relief
Date
2/21/2022 2:18:20 AM
(MENAFN- Trend News Agency)
Indian goods worth as much as $26 billion, which are currently
taxed at 5% by the UAE, will be allowed at zero duty once the free
trade agreement (FTA) with Abu Dhabi comes into force by May,
according to a commerce Ministry analysis.
It will particularly help labour-intensive sectors, including
textiles and garments, agriculture, leather and footwear, where
domestic exporters typically operate at thin margins and compete
with low-cost economies like Bangladesh and Vietnam.
Some of the remaining traded items, which will also have
duty-free access to the UAE market under the FTA signed on February
18, currently attract higher duties and some others are already
granted tax-free entry. So, the extent of duty relief in these
products varies accordingly.
To start with, while Abu Dhabi has offered duty-free access to
90% of Indian exports to it, New Delhi will allow 80% of the UAE's
supplies at zero tax. Both the countries are aiming to raise
bilateral trade to $100 billion in five years from about $60
billion now.
India remained shy of an FTA for a decade due to complaints that
deals struck in the UPA era had short-changed interests of domestic
industry and only widened New Delhi's trade deficit with the
partner nations. By signing the latest pact, the government hopes
to prove sceptics wrong.
According to the ministry's analysis, the Indian textile and
garment sector will see additional exports of $2 billion to the UAE
over the next 5 years due to the FTA. Of this, incremental exports
in man-made fibre textiles alone will be to the tune of $650
million.
MENAFN21022022000187011040ID1103734427
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.