New Delhi, February 15
India and the UAE will sign a free trade agreement at a virtual ceremony presided over by Prime Minister Narendra Modi and UAE Crown Prince Sheikh Mohamed bin Zayed bin Sultan Al Nahyan towards the weekend. This will be the first FTA to be inked by the Modi Government which has criticised previous ones as having been detrimental to its economy and balance of trade.
The Government hopes the FTA will lead to the UAE investing more in the National Infrastructure Pipeline with officials estimating the amount at $ 100 billion if necessary conducive conditions are in place.
India and the UAE had planned to sign this pact in January this year when PM Modi had planned to go to Dubai. However, the visit was postponed due to the third Covid wave in India and it was then resolved to sign the pact in March. But it has not been pushed forward to February as both sides were keen on getting their economic partnership going as prelude to greater cooperation in the new Quad of the West comprising India, the UAE, Israel and the US.
By the year’s end, the Government intends signing three trade pacts with the UAE (Comprehensive Economic Partnership Agreement), the UK (Enhanced Trade Partnership) and Australia (Comprehensive Economic Cooperation Agreement). India is also negotiating trade agreements with Canada (CEPA), Israel (FTA), India-Eurasian Economic Union (FTA), European Union (Based Trade and Investment Agreement), and the South Africa Customs Union (FTA). The eight FTAs are intended to give a boost to exports. India has set a target of $ 500 billion in exports by fiscal 2023.
India recently held trade talks with the UK in which Commerce Minister Piyush Goel held talks with UK Secretary of State for International Trade Anne-Marie Trevelyan. New Delhi wants to tie up the movement of professionals to Britain as a quid pro quo for lowering import tariffs in some areas.
