Trade ministers of both UAE and India have stated that trade of goods and services between the two countries will be increased by 70 percent over the next five years, achieving a target of more than $115 billion in bilateral trade.
Both nations are trying to conclude a Comprehensive Economic Partnership Agreement (CEPA) and hope to sign a free trade agreement in March 2022 in order to achieve the bilateral trade target.
"A new strategic economic agreement is expected to increase bilateral trade in goods to $100 billion within five years of the signed agreement," the ministers said in a joint statement
According to Piyush Goyal, India's trade minister, both countries will also aim to sign a trade deal soon, before concluding the CEPA, which is likely to be implemented by March 2022.
UAE's Minister of State for Foreign Trade Thani Al Zeyoudi said in New Delhi that the agreement is aimed at increasing investments and job opportunities in both the countries.
According to available data, UAE was India’s third largest trading partner with about $59.12 billion of bilateral trade in 2019-20 and its second-largest export destination after the US with exports valued at about $30 billion.
Both India and the UAE are planning to boost their economies by increasing exports and forging new relationships with other countries.
Recently, UAE announced its plans to sign comprehensive economic partnership deals with eight countries to consolidate its position as a global gateway for investment and trade. The Emirates aims to double its economy from Dhs 1.4 trillion to Dhs 3 trillion in the next 10 years
In the second week of September, UAE announced that it had expanded a partnership with the British government, committing 10 billion pounds ($13.7 billion) to invest in the UK in five years. It also has big plans to improve economic relations with Israel to more than $1 trillion in the next 10 years.
(Reporting by Seban Scaria; editing by Daniel Luiz)
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