With continued use of Comprehensive Economic Partnership Agreement, exports expected to increase, says Commerce Department
With continued use of Comprehensive Economic Partnership Agreement, exports expected to increase, says Commerce Department
India’s non-oil exports to the United Arab Emirates increased by 14% between June and August, the Ministry of Trade and Industry said on Sunday, attributing the rise to the bilateral trade agreement between the two nations which came into force in May.
India’s global non-oil exports over the same period grew by just 3% on an annual basis, the ministry said, seeking to point to the much higher growth in such exports to the UAE, which amounted to $5.92 billion versus $5.17 billion. one year ago.
“Excluding oil-related imports, India’s imports from the UAE in the same three-month period increased by 1% to $5.61 billion,” the ministry noted, adding that trade in oil was not taken into account in this analysis for two reasons.
“…The increase in petroleum/petroleum product imports is largely due to rising world prices and, to some extent, an increase in offtake volumes. Furthermore, it is pertinent to mention that the bulk of oil imports from the UAE are crude oil, the demand for which is inelastic and the tariffs for which are very low,” he explained.
The largest increase in Indian exports to the UAE during this period was seen in sugar (up 237%), cereals (161%), vegetables (82%), inorganic chemicals ( 74%) and electrical machinery and equipment (67%).
The Ministry of Commerce said it expects Indian exports to increase further in the coming months with the growing use of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) by the exporters and a series of trade promotion events planned in the UAE in 2022-23.