A Member Firm of Andersen Global

Contact Us
IMC Logo

Blog

Dubai’s Pro Business Policies Fuel Indian Startup Expansion Header
  • NEWSLETTER, U.A.E, INDIA

Dubai’s Pro-Business Policies Fuel Indian Startup Expansion

An interesting trend reveals that an increasing number of Indian startups are flocking to the free trade zones in Dubai. The strategic location of this city and business-friendly regulations make it an attractive destination for Indian companies.

Particularly, Dubai has been at the forefront of innovation when it comes to AI and sustainability. This ensures rapid scalability and cost-effectiveness for international organizations operating in the country.

With India and the UAE strengthening economic ties through the Comprehensive Economic Partnership Agreement (CEPA), the influx of Indian enterprises into Dubai is growing rapidly. As many as 12,142 Indian companies joined Dubai Chambers in the first nine months of 2024. These amazing numbers demonstrate how attractive Dubai appears to be for cross-border expansion.

Successful companies from India are seeking professional assistance for company formation in Dubai from established consultants to streamline the process.

Tax Incentives and 100% Ownership

In India, many entrepreneurs struggle with the burden of corporate tax. These companies find a viable alternative in the free zones of Dubai. With zero personal income tax, duty-free import-export policies, and full profit repatriation, these free zones foster an environment conducive to investors.

Indian businesses expanding to country can choose from 40 multidisciplinary free zones. Out of these, 20 are located in Dubai. The city offers businesses from various verticals with strategic benefits, strategically eliminating bureaucratic hurdles and reducing operational costs.

Seamless Business Setup and Legal Support

The free zones in Dubai have been designed to maximize efficiency for businesses operating here. Companies can get themselves registered quickly and without much hassle. The registration process takes as little as five days.

Moreover, entrepreneurs benefit from a streamlined licensing process. They also receive facilities like easy visa processing and access to office spaces and banking solutions. Particularly, free zones like the DIFC protect Indian businesses with robust legal frameworks. This regulatory compliance has been one of the factors fuelling cross-border investment from India.

A Strategic Gateway for Global Trade and Logistics

The world-class logistics system in Dubai makes it an attractive destination for SMEs expanding internationally.
  • The Jebel Ali Port, the largest in the Middle East, is a key hub for trade between the East and the West.
  • The Dubai International Airport connects businesses to more than 200 destinations.
  • The Dubai Logistics Corridor seamlessly integrates Jebel Ali Port, Al Maktoum Airport, and surrounding free zones.

This superior infrastructure and connectivity reduce operational bottlenecks in the free zones in Dubai.  Startups like AI-powered logistics firms are capitalizing on this enriched infrastructure to optimize their supply chains to enhance efficiency.

Indian Tech Startups Get an Ideal Launchpad in Dubai

For Indian tech startups, Dubai has emerged as the perfect Launchpad. The digital transformation in the Middle East, including the growth of AI and fintech positions the city as a magnet for tech entrepreneurs in India.

Free Zones like Dubai Silicon Oasis and Dubai Internet City offer subsidized office spaces to Indian firms. These companies also benefit from R&D support, and accelerator programs backed by the government.

The Dubai Economic Agenda D33 further aims to establish Dubai as one of the top four financial hubs of the world by 2033. This creates an ideal environment for Indian startups dealing with AI analytics, digital payments, and blockchain.

With over 70 venture capital firms supporting high-growth sectors, Indian companies form a substantial part of the business ecosystem in Dubai.

Business Set up Consultants in Dubai

As Dubai cements its status as a global innovation hub, Indian startups continue to expand to the city and capitalize on its lucrative opportunities. Indian startups and new companies significantly benefit from the assistance of business set up consultants in Dubai, like the IMC Group.

With strategic advisory solutions from these experts, Indian firms can make the most of tax incentives in Dubai and grow their presence in the country. No wonder, the free zones of Dubai are the ideal launch pad for startups in India.

Read More

UAE Seeks Enhance Trade Relations with India Through CEPA Expansion
  • NEWSLETTER, U.A.E, INDIA

UAE Seeks to Enhance Trade Relations with India Through CEPA Expansion

In an effort to boost its commercial activities, the UAE is actively looking to expand its scope of trade with India under the CEPA (Comprehensive Economic Partnership Agreement). The Middle-Eastern country aims to strengthen bilateral trade, which comes as a positive development for firms expanding globally. The Chief Operating Officer of the Dubai Multi-Commodities Centre (DMCC), Feryal Ahmadi, expressed their ambition, highlighting the pivotal role of India as the largest trading partner of the UAE.

The UAE has made significant efforts to explore new commercial avenues under the CEPA, which was signed in February 2022. Particularly, the country is keen to establish trade ties with India, with merchandise like agri-commodities and critical minerals. Ahmadi demonstrated the strategic importance of expanding these sectors under the agreement, which is likely to foster deeper economic ties between the two nations. She also pointed out the increasing significance of the other Free Trade Agreements and trade corridors, which include the India-Middle East-Europe Economic Corridor.

Role of DMCC in Strengthening Economic Partnerships

Ahmadi, while speaking at the launch of the report of the DMCC, titled “The Future of Trade”, highlighted how CEPA facilitates the reduction of tariffs and eliminates trade barriers. This enhances the access to these regions in the market. The report highlighted that the UAE-India CEPA was a prime example of the trade benefits that such agreements deliver.

The report also pointed out the strategic demographic location of the UAE and its business-friendly strategies. All these factors position the country as a crucial hub for regional trade and economic integration.

Establishing Bilateral Trade Relations

With global economic dynamics evolving, the report identified new centers of economic activities emerging in Asia, particularly around China, India, and ASEAN. The multilateral agreements between the two countries significantly reduced tariffs and fostered regional economic cooperation. The proactive approach of the UAE in this regard demonstrates its commitment to fostering a sustainable economic growth environment.

The UAE continues to strive to consolidate its position as a key player in global trade dynamics. This is evident from its consistent efforts to broaden the scope of the CEPA with India. Naturally, international businesses are expanding to the UAE to capitalize on the growth opportunities.

Forward-thinking businesses eyeing a company formation in Dubai are closely coordinating with the IMC Group for professional consultancy and advice. With experts guiding them on the right path, enterprises can confidently embrace the growth trajectory and ensure legal compliance while expanding to the UAE.

Read More

Leveraging Dubai as a Hub for Global Expansion: A Strategic Move for Indian FMCG Companies
  • NEWSLETTER, U.A.E, INDIA

Leveraging Dubai as a Hub for Global Expansion: A Strategic Move for Indian FMCG Companies

An interesting trend reveals that FMCG companies in India are increasingly turning to Dubai as a key global hub for global expansion. The strategic location of Dubai at the crossroads of continents presents FMCG firms with unparalleled advantages to expand their global footprint. As the international business landscape looks dynamic, these firms are seeking professional assistance to ensure seamless company incorporation in Dubai. In this edition, we have come up with a comprehensive overview of why Dubai has emerged as the preferred choice for Indian FMCG firms.

Strategic Location and Potential for Business Environment

The tactical location of Dubai between the East and the West, along with its world-class infrastructure makes it an ideal base for Indian FMCG companies. These firms also benefit from the business-friendly environment in the UAE while expanding globally. The free trade zones in the city, like the Jebel Ali Free Zone (Jafza), offer lucrative incentives to these firms. Some of these perks include 100% foreign ownership and tax exemptions, which streamline business operations and make processes cost-effective.

Dubai serves as a gateway to lucrative markets in the Middle East, Africa, and Europe. Thanks to its extensive network of free trade agreements and strategic partnerships, Indian FMCG companies can capitalize on these trade corridors while expanding their customer base globally.

Trade and Logistics Advantage

Dubai boasts a robust logistics ecosystem, with the Jebel Ali Port and Al Maktoum International Airport connecting more than 150 maritime destinations and 300 cities worldwide. This logistical advantage boosts supply chain management and helps FMCG firms in their importing and exporting endeavours.

Bharat Mart Initiative

The upcoming Bharat Mart in Jafza is all set to revolutionize the trading landscape for Indian businesses in Dubai. The mega warehousing facility is likely to become operational by 2025 and will serve as a dedicated platform for Indian companies to distribute and re-export their products regionally and globally. Covering a massive space of more than 700,000 square feet, the warehousing facility will offer advanced facilities customized to meet the needs of different businesses.

Supportive Legal Framework and Incentives

The legal framework in the UAE is supportive to Indian FMCG companies. The Commercial Agencies Law and the Investment Promotion and Protection Agreements (IPPAs) make the business environment stable and transparent. These measures protect the rights and interests of the investors while minimizing investment risks, fostering a conducive atmosphere for the growth and sustainability of businesses.

Cultural Aspects

The presence of a significant Indian population in the UAE nurtures a healthy cultural affinity with the country. This goes a long way in facilitating market entry and engaging consumers, particularly for FMCG companies. These firms understand the local preferences and customer behaviour and are coming up with tailored products. This is one of the reasons why the sale of FMCG goods is gaining traction in the Gulf market.
Ease of Setting up Business
With the UAE streamlining the process of setting up a business in Dubai through online platforms, foreign businesses can incorporate their companies in Dubai in a quick time. Besides, entrepreneurs enjoy the flexibility to choose from a wide range of business licenses and legal structures based on their operational needs.
Professional Assistance for Setting Up a Business in Dubai

The emergence of Dubai as a global business hub presents tremendous opportunities for Indian FMCG companies to scale their operations internationally. Entrepreneurs wondering as Indian how to start a Business in Dubai can reach out to the IMC Group for professional support and comprehensive consultation. Leading FMCG firms in India seek expert assistance to ensure legal compliance during their company incorporation in Dubai and capitalize on the facilities offered by the UAE government. With professionals on their side, forward-thinking FMCG companies can confidently expand overseas and tap fresh customer bases in global markets.

Read More

Unlocking SME Potential: The Power of the India-UAE CEPA Trade Agreement
  • NEWSLETTER, U.A.E, INDIA

Unlocking SME Potential: The Power of the India-UAE CEPA Trade Agreement

The Comprehensive Economic Partnership Agreement (CEPA) between India and UAE has opened up new avenues for company formation in Dubai and India. CEPA was India’s inaugural bilateral trade agreement with any MENA country. Since then, trade flows between these nations have increased by almost 33%.

CEPA places particular emphasis on providing an environment in which small and medium-sized enterprises (SMEs) can flourish. India has long recognized the crucial role SMEs play in driving economic growth and meeting its ambition of becoming a 5 trillion-dollar economy. But to do so, they require duty-free access to foreign markets without disruption. CEPA meets these needs by eliminating all tariffs within 10 years if goods move between India and UAE.

This agreement provides businesses and customers access to 11 service sectors and over 100 subsectors, such as healthcare, construction, education, transport, metals and processed food industries. However, realizing its full potential requires developing a reliable cross-border trade network, logistics partner and an ecosystem that encourages small- and medium-sized enterprises (SMEs) to thrive.

Logistics infrastructure is critical to bilateral trade prosperity. India already counts UAE as its third-largest trading partner and second-largest export destination, accounting for 40% of their total Arab trade. Pharmaceutical, medical device, and automotive sectors should experience similarly substantial increases; as a result, more investment will likely be put in smart supply chain networks tailored to industry demands.

Pharmaceutical companies require services like an end-to-end temperature-controlled supply chain in order to guarantee shipment integrity, while gems and jewellery businesses will find that utilizing digital processes for customs documentation will help reduce complex paperwork processes, giving their business a competitive edge in this arena. Hence, businesses that partner with the right logistics provider will enjoy a distinct competitive edge.

Logistics investment is at the core of both the Indian and UAE economies, making import/export operations possible. India’s logistics market is projected to reach $380 billion by 2025 while the UAE freight/logistics market will surpass $31 billion by 2026. Their respective infrastructure combined with free-trade policies, bilateral agreements, investments, trade links and free movement policies will have a profound effect on commerce between these two nations and across the Gulf region.

Conclusion

The CEPA trade agreement has ushered in a new era of cooperation between India and the UAE, creating abundant opportunities for company formation in both countries and investing in logistics infrastructure to foster an enabling ecosystem for SMEs. This collaboration will help both nations unlock their full potential and cultivate an economically self-reliant and sustainable economy. If you’re looking to capitalize on these opportunities and need assistance with new company incorporation in India, look no further than the IMC Group. IMC Group’s expertise and experience can guide you through the entire process and help your business flourish in this exciting new landscape.

Read More

Rupee-Dirham Trade Deal to Boost Business Ties Between UAE and India
  • NEWSLETTER, U.A.E, INDIA

Rupee-Dirham Trade Deal to Boost Business Ties Between UAE and India

Abdulnasser Jamal Alshaali, the UAE ambassador to India, informed that technical discussions between the UAE and India are underway to establish a trade arrangement with a finalized rupee-dirham exchange rate.

According to him, the technical discussion is still in progress, but they have already agreed to conduct a specific amount of trade between the UAE and India without relying on a third currency. He further added that both sides are collaborating on a remittance facility to make the transaction process more straightforward and convenient.

The fact “He added that the strategic oil reserve, which has been established and operational for quite some time, is quite beneficial and constructive, particularly considering the current state of affairs”.

Dubai, UAE is already a popular destination for Indian businesses looking to expand their operations overseas. With a business-friendly environment, world-class infrastructure, and a strategic location at the crossroads of Europe, Asia, and Africa, Dubai has become a hub for international trade and commerce. Dubai has become a popular option for Indian entrepreneurs and businesses looking to tap into the Middle Eastern market.

According to the ambassador, the UAE considers India a dependable partner in terms of its food security.

Alshaali highlighted the significance of food security for the UAE, stating that the country doesn’t produce much food and relies heavily on imports. Therefore, having a dependable partner like India is critical for the UAE’s food security.

Conclusion

The rupee-dirham trade deal is a significant step towards strengthening the economic ties between India and UAE. It is expected to create new opportunities for businesses in both countries and drive economic growth in the region. With company formation in Dubai and company formation in India becoming easier, more businesses are likely to explore opportunities in these markets, further boosting trade between the two countries.

Read More

U.A.E’s Digital Drive Means Opportunities Galore for Indian Tech Firms & Talents
  • NEWSLETTER, U.A.E, INDIA

U.A.E’s Digital Drive Means Opportunities Galore for Indian Tech Firms & Talents

The year 2022 ended on a sweet note for both UAE and India as it witnessed the signing of a historic CEPA between the two with improving bilateral relations on both the economic and political fronts. In 2022, after the USA and China, the UAE became the third largest trading partner of India with bilateral trade exceeding USD 88 billion between the two countries.

Almost 40% of the UAE population is Indian and the ambitious digital infrastructure drive coupled with the growing technology startup incubation in the country is all set to attract more Indian tech talents and investors for Company Formation in Dubai, UAE. The recent initiatives undertaken by the UAE government including the issuance of Golden visas and long-term visas to freelancers in the tech field are seen as added catalysts fueling tech talent migration from India to the UAE.

The recently held GITEX Global show in Dubai during the middle of October 2022 also witnessed a huge response from Indian technology startups who displayed AI-powered solutions for creating multilingual videos of digital avatars including several technological innovations in health tech, blockchain, big data, IoT, metaverse and Web 3.0.

Dubai is also aggressively promoting the latest technologies in coding, big data analysis, virtual and augmented reality and human-machine interaction to drive the future for realizing the vision of Sheikh Mohammed bin Rashid Al Maktoum, the Ruler of Dubai. Today, Dubai is a city of big data specialists and coders making it a global hub for
the metaverse community.

With the building of the Museum of the Future, Dubai UAE has conveyed to the world that the country has embarked upon its relentless futuristic journey of flying digitally high and exploring celestial bodies. Emirates space agency has already launched the Moon and Mars missions and is now planning for an interplanetary mission of landing a spacecraft on an asteroid.

“We want the UAE to become the world’s most prepared country for Artificial Intelligence,” said His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice-President and Prime Minister of the UAE and Ruler of Dubai and announced on Twitter regarding his plans for the Centennial 2071 project. The UAE first rolled out Strategy for Artificial AI in 2017 which is considered to be the first mega project to achieve the objectives of the UAE Centenary 2071 to make all government services, sectors, and infrastructure projects rely on AI focusing on the economy, education, government development, and community cohesion.

The UAE AI strategy has placed the country at the top of the region for its readiness to adopt AI and will attract increased investments in the latest AI tools and technologies for promoting more effective governance and achieving 100% utilization of AI in government services and data analysis.

Dubai also plans to lead other emirates in 3D printing by 2030 and come out as a role model in all areas of science and innovation. By 2030, the city wants to become the most preferred destination for innovation and technology-driven businesses.

Dubai also has plans to convert 25% of all vehicles to autonomous driverless AI-based vehicles by 2030 to realize enormous time savings and a huge rise in manpower productivity.

Dubai also plans to switch over to renewable energy with the help of innovative technologies and under its clean energy strategy wants to reduce the city’s dependency on conventional energies by 75% by 2050. The Mohammed bin Rashid Al Maktoum Solar Park in Dubai is the largest single-site solar park in the world that would have the capacity to produce 5,000 MW of power by 2030.

The country focuses on promoting global free trade agreements and agritech that would help it become the world’s number one country in the Global Food Security Index by 2051.

Final Thoughts

As Dubai UAE accelerates the pace of digital transformation and adoption of smart technologies, opportunities galore for Indian technology firms and professionals. India is the leading innovation hub in the world and has a vast IT talent pool. India and the UAE have been great partners on multiple fronts including IT.

There are multiple opportunities for Indian entrepreneurs who can leverage Dubai’s rapid digital transformation and set up companies with the help of reputed and professional business setup consultants in Dubai.

Read More

Hydrogen: Likely to Generate USD 150 Billion Investment Opportunity in India
  • NEWSLETTER, U.A.E, INDIA

Hydrogen: Likely to Generate USD 150 Billion Investment Opportunity in India

During the Bloomberg New Energy Finance (BNEF) Summit in New Delhi on 22nd June 2022; Kapil Maheshwari, President, New Energy Division, Reliance Industries Limited, noted that India provides huge opportunities in the field of hydrogen and in all likelihood would generate billion-dollar investments.

As per the RIL President, India offers significant prospects in the hydrogen industry and is projected to attract big investments amounting up to USD 150 billion.

When asked about the prospects of the Hydrogen industry, Maheshwari remarked, “There are chances. We (India) already have a market of 6-7 million tonnes, which is a sizable amount. A 150-200 billion dollar investment might arrive in ten years, creating thousands of employment.”

Earlier to this, in a panel discussion on “India’s Hydrogen Opportunity,” the panelists emphasized the implementation of specific measures that the Indian government must undertake in the form of “penalties and taxes” to increase the demand for hydrogen in India.

Kapil Maheshwari pointed out, “the government should take action to address the development of demand for hydrogen by enacting obligations, carbon taxes, and penalty taxes until the market embraces it.” The RIL President also highlighted that homogeneous regulations are necessary to boost investor trust.

“Make sure your policies are followed. No ambiguity in regulations or revisions would provide investors confidence that they are investing where they expect to see a return on their money,” Maheswari emphasized.

Naresh Lalwani, Head of Strategy, Planning & Diligence at JSW Steel noted that public financing is necessary for developing and enhancing the hydrogen ecosystem.

Lalwani also added that besides public financing, low-cost hydrogen production technology is the need of the hour to curb the existing high cost of hydrogen generation of USD 3-4 per kilogram.

In the context of the usage of hydrogen in the production of steel, Lalwani said, “the price of steel will increase by six times if hydrogen is used for $3–4 per kg.”

Prime Minister Narendra Modi, at the 26th United Nations climate change conference (COP26) in 2021 had previously mentioned that the Zero-emission objective of India will be reached by 2070. India will need to invest more than USD10 trillion to reach its Zero-emission target by 2070.

The Production Linked Incentive (PLI) scheme must also be put in place by the Indian government to enhance domestic production through new hydrogen manufacturing company formation in India and reduce India’s reliance on energy imports for fulfilling its Zero-emission objective.

Besides promoting the demand and use of green hydrogen through incentives and regulations with reduced pricing, implementing advanced carbon capture technology for the use of coal-based energy, the largest source of primary energy locally available in India is also vital to achieving the target.

India’s renewable energy sector has been witnessing a steady increase in FDI inflow as many overseas investors are getting attracted to doing business in India. The total inflow during the FY 2021-2022 first half stood at USD 1.03 billion, more than that was invested during FY 2020-2021.

Read More

India, UAE Sign MoU on Industries and Advanced Technologies
  • NEWSLETTER, U.A.E, INDIA

India, UAE Sign MoU on Industries and Advanced Technologies

On 9 June 2022, the Union Cabinet of Ministers chaired by the Prime Minister, Shri Narendra Modi, approved the proposal for signing a bilateral Memorandum of Understanding (MoU) between India and the United Arab Emirates (UAE) on Cooperation in the field of Industries and Advanced Technologies.

The MoU followed a resolution to boost up joint ventures in the area of defence after India and UAE convened a series of meetings focused on energy transition. Sultan Al Jaber, the Minister of Industry and Advanced Technology of UAE visited New Delhi on May 26.

India UAE bilateral relation has matured over the years since the creation of UAE in 1971 and the two countries share social, political and economical linkages. Importantly, the UAE is the eighth largest investor in India with an estimated investment of $18 billion whereas Indian investments in the Middle East federation stand at an estimated USD 85 billion.

Growing India-UAE economic and commercial relations contribute to the stability and strength of a rapidly diversifying and deepening bilateral relationship between the two countries. India-UAE bilateral trade, valued at US$ 180 million (Rs.1373 crore) per annum in the 1970s has increased to USD 60 billion (Rs.4.57 lakh crore) making the UAE, India’s third-largest trading partner for the year 2019-20 after China and the US.

India and the UAE have already entered into a bilateral “Comprehensive Economic Partnership Agreement” (CEPA) recently in February 2022 and this agreement, in the light of the recent CEPA has the potential to boost bilateral trade between the two countries from USD 60 billion (Rs.4.57 lakh crore) to USD 100 billion (Rs.7.63 lakh crore) over the next five years.

The MoU focuses on developing and strengthening industries in both countries through advanced technology transfer, deployment of smart and innovative technologies in industries and bilateral investment. Employment generation is also highly likely across both the economies and may attract prospective Indian businesses for expanding overseas and doing business in UAE.

Both countries agreed on continuous monitoring and progress assessment on key priority areas in bilateral science, technology, and innovation projects. Cooperation in the area of standardisation would also be a part of and include metrology, conformity assessment, accreditation, and halal certification.

This MoU will likely increase research and innovation in all areas of bilateral cooperation, especially in the areas of Artificial Intelligence, Industry 4 smart technologies, Renewable Energy, advanced Healthcare and Life sciences on successful implementation of the same. This would also result in increased growth potential in the advanced technology sectors, increased domestic output, higher exports, and a lowering in imports. This would also inspire Indian investors to invest in technology company formation in Dubai UAE.

This MoU on advanced technology would also result in meeting the objective of Atmanirbhar Bharat, a phrase used and popularized by the Hon’ble Indian Prime Minister in making India a self-reliant nation.

India has always been a crucial and integral part of the international technology research and development ecosystem and over the years, has been working with countries and organisations to encourage the development of economic and scientific relationships and pave the way for advanced technology company formation in India.

In the light of this MoU, the trade between India and the UAE could potentially be increased from USD 60 billion (Rs.4.57 lakh crore) to USD 100 billion (Rs.7.63 lakh crore) over the next five years.

An official statement from the Indian government said, “The MoU aims at strengthening and developing industries in both nations through investments, technology transfer and the deployment of key technologies in industries.”  The statement also highlighted, “This is likely to generate employment across the economy.”

Read More

India UAE Bilateral Trade Pact Will Create Huge Job Opportunities: Piyush Goyal Says
  • NEWSLETTER, U.A.E, INDIA

India UAE Bilateral Trade Pact Will Create Huge Job Opportunities: Piyush Goyal Says

Commenting on the recently concluded comprehensive trade agreement between India and the UAE effective from 1st May 2022, the Indian Commerce and Industry Minister Piyush Goyal remarked that the agreement would help in creating huge job opportunities and boost the growth of the domestic economy of India.

In all expectations, this bilateral pact would enhance the bilateral trade in goods between India and the UAE to more than USD 100 billion and trade in services to over USD 15 billion within five years, he noted.

A high-level delegation from the UAE was on a three-day visit to India last month led by UAE Minister of Economy Abdulla Bin Touq Al Marri accompanied by UAE Minister of State for Entrepreneurship and SMEs Ahmed Belhouli Al Falasi. During this visit, the Indian Commerce and Industry Minister along with the UAE Minister of Economy said in a media briefing that the agreement would open the door for many sectors, primarily the labour-intensive ones including textiles, pharmaceuticals, gems and jewellery, and agriculture.

‘India-UAE Start-up Bridge’ was jointly launched by the two ministers at the India-UAE Partnership Summit, organised by the Confederation of Indian Industry (CII). The immediate and primary focus of this bridge would be to bring UAE investments to India closely working with the private equity houses and venture capital, an official release noted.

Besides, the bridge would help arrange joint training sessions for the incubators of both countries and would mainly focus on developing training modules for incubators in the UAE by identifying the needs during the early stages of business setup in Dubai UAE.

As per an official release, joint programs will also be organized for the startups from the UAE to explore incubation opportunities and company formation in India.

Piyush Goyal while briefing the press highlighted saying, “Clearly millions of jobs will be added if our exports which are now at about USD 36 billion, which is about nearly Rs 2.5 lakh crore, grows as we are planning. And my own guess estimate is this partnership can finally go up to about USD 250 billion of bilateral trade on both sides.”

“So, my sense is that this will give a big boost to economic growth, to jobs. And the opportunities it opens not only in the UAE, but in the larger ground for the African region. (It) should significantly give a bump up to the Indian economy as well,” he noted.

As per the Indian Commerce and Industry Minister, the bilateral trade pact would not only open doors for domestic businesses to UAE but also the other countries as UAE is a gateway for large parts of Africa, CIS countries including Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, Tajikistan, and other gulf nations.

Goyal also believed that Indian pharmaceutical products would get easy entry into the UAE market and emphasized saying, “we believe (bilateral) trade will grow to at least to USD 100 billion in the near future…Our own commitment is to take it to a much higher level”

Piyush Goyal sounded upbeat and expected the CEPA framework to add a million jobs in India by offering great opportunities to the startups with enormous potential for educational engagement and skill development.

“We are looking at significant investments as the UAE has committed over USD 100 billion of investments into India in manufacturing, infrastructure, (and) service (s). So, the business will get a booster shot”, the minister highlighted.

The Minister informed about the vast network of Indian startups and said that many startups were set up in the last six years and over 65,000 startups are registered with the ministry. There are over 100 unicorns in India forming the third largest startup ecosystem in the world, as per the Minister.

According to the UAE minister, the pact will contribute to 1.7% GDP growth in their economy and described the trade pact as not just on products and commodities but also on services. The UAE minister hoped for other opportunities to come along as well.

The Indian minister appeared certain that the partnership gain would start flowing from this year itself and pave the path for Indian investors for company formation in Dubai UAE and as evident from the initial deal wins by the Indian gems and jewellery sector.

Read More

India-UAE Comprehensive Economic Partnership Agreement: The Key Impacts and Benefits
  • NEWSLETTER, U.A.E, INDIA

India-UAE Comprehensive Economic Partnership Agreement: The Key Impacts and Benefits

Introduction 

India-UAE CEPA was signed on February 18 in New Delhi during the India-UAE Virtual Summit. The CEPA holds strategic importance to both countries as the UAE is currently India’s third-largest trade partner and second-largest export destination after the USA. UAE has also made considerable investments in company formation in India with an estimated investment of $ 18 billion. India and the UAE have recently entered into a Memorandum of Understanding (MoU) whereby the UAE has committed $ 75 billion towards infrastructure development in India.

Bilateral trade between India and the UAE stood at USD 43.3 billion in 2020-21 Exports were worth USD 16.7 billion and imports aggregated at USD 26.7 billion in 2020-21.

It is expected that CEPA would increase the bilateral trade between the two countries from the current USD 60 billion to USD 100 billion over the next 5 years. 

The Key Impacts and Benefits 

Commerce and Industry Minister Piyush Goyal on 27th March 2022 unveiled the negotiations for India-UAE CEPA during his visit to the UAE. The India-UAE CEPA document is now available in the public domain.

Tariff Elimination 

The pact, which is expected to come into force on the 1st of May 2022, will eliminate duties for 90% of India’s exports in value terms to the UAE across several sectors including gems and jewellery, textiles, leather, and engineering goods.

Rules of Origin

Stringent rules of origin have been provided in CEPA to prevent the routing of products manufactured in third countries to India and to ensure that preferential tariffs can only be claimed during clearance only after the production of the certificate of origin issued by a government agency of the relevant country. 

The agreement mandates up to 40% value addition on most goods and wholly-obtained criteria for Agri products to prevent misuse of the CEPA and take advantage of lower tariffs. The steel needs to be melted and cast before being shipped.

Establishing Investment Council

The two countries agreed to set up a technical council on Trade promotion, Investment and Facilitation 

Tariff Elimination on Pharma Products

India and the U.A.E. will accept the pharmaceutical products manufactured in either country, requiring no prior inspection, subject to approval by the regulatory authorities of Australia, Canada, the European Union, Japan, the U.S. or the U.K. Indian pharmaceutical products and medical products will get regulatory approval within 3 months.

India’s free-trade pact with the United Arab Emirates eliminated tariffs on finished pharmaceutical products and tariffs on other items including enzymes for pharmaceutical use & pharmaceutical glassware have also been done away with.

Permanent Safeguard Mechanism

The agreement also has in place a permanent safeguard mechanism for certain goods. It covers government procurement and intellectual property and dispute mechanisms.

Trade in Services

Regarding trade in services, India has given market access to the UAE in almost 100 sub-sectors, while Indian service providers will have access to about 111 sub-sectors from the 11 broad service sectors such as business services, communication services, construction and related engineering services, distribution services, educational services, recreational services, financial services, environmental services, health-related and social services and tourism & travel services.

The wide market access across these attractive services sectors in the UAE is all set to lure Indian investors and promote Indian investment in the UAE through company formation in Dubai.

Trade in Goods

India has offered a 1% duty concession for gold imports from the UAE for up to 200 tonnes of inbound shipments. It has also given significant tariff concessions to the USE on dates, petroleum products, petrochemicals, metals, and minerals.

Preferential market access is given by the UAE on over 97 % of its tariff lines which account for 99% of Indian exports to the UAE in value terms, especially for all labour-intensive sectors such as Gems and Jewellery, Textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, medical devices, and Automobiles. India reciprocated by providing preferential access to the UAE on over 90% of its tariff lines.

Seventeen agencies from the Indian side have been listed, besides the export inspection council, to issue certificates of origin to exporters digitally which would enable speedy clearances and trade.

Mutual Recognition of Professional Degrees

CEPA would facilitate mutual recognition of professional degrees in various fields including architecture, engineering, medical, nursing, accountancy, and company secretaries and allow easier mobility of skilled professionals across the two nations.

Digital Trade

CEPA is a bilateral trade agreement with a dedicated chapter on digital trade. The chapter focuses on aligning regulatory standards on how digital trade between India and UAE is handled.

Conclusion 

As CEPA classifies the subjects chapter-wise with minimum interpretation hassles, the adaptation of this trade pact is expected to be easier as vowed by Industry experts. 

Additionally, the inclusion of a few government agencies for issuing certificates of origin will help streamline the process for effective implementation.

Read More

Follow Us

Recent Posts

Get updated by Signup
to our Newsletter!

IMC Logo

Get Started

About

Locations

© 2025 IMC Group. All Rights Reserved.

IMC Logo

About

Get Started

Locations

© 2024 IMC Group. All Rights Reserved.

IMC Logo

Get Started

About

Locations

© 2024 IMC Group. All Rights Reserved.