India's exports to the UAE are expected to touch an 'all-time high' of $32 billion by the end of this fiscal due to the benefits of free trade agreement between the countries, an official said on Thursday. The two countries also plan to integrate their customs and logistics portals for real-time tracking of shipments for priority of entry in ports, as part of a review of the bilateral Comprehensive Economic Partnership Agreement (CEPA).
"India's exports (to the UAE) are around $28.3 billion. We are hopeful to touch an all-time high of $32 billion exports this year," the government official said. India and the UAE are working on customs facilitation wherein their logistics and customs portals would get integrated and help in real-time data exchange and tracking of ships for priority of entry in ports.
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A review of the trade agreement, which came into force on May 1, 2022, is likely in May. On a monthly basis, around $1.3 billion of India's exports are going on zero duty as against $2.72 billion of total outbound shipments. As many as 6,944 certificates of origin were issued in February as against 5,754 certificates in November last year. India's exports of gems and jewellery, automobiles, coffee, tea, and articles of iron and steel, recorded a growth during June 2022-February 2023 as compared to the same period a year ago.
"There is an increase in the CEPA utilisation," the official said. However, India's exports of apparel, and iron and steel to the UAE dipped during the period. Apparel exports declined due to the global headwinds while shipments of iron and steel fell despite the government removing export restrictions on them. According to the official, their exports are expected to pick up in the next fiscal.
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India's overall goods exports to the UAE rose 10.4 per cent on-year in June 2022-February 2023 at $23.03 billion, while imports increased 12.9 per cent at $38.95 billion.
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