21 February 2022, Mumbai:
Signed between India and UAE, the Comprehensive Economic Partnership Agreement (CEPA) will unleash the infinite potential that both nations hold in the textile sector. The trade agreement has been built on the three pillars of trust, transparency and talent, says Piyush Goyal, Minister of Textiles and Industry. It will boost India’s textile exports to $ 2 billion over next 5 years. Duty-free exports are projected to rise to $650 million/year over next 5 years
Indian textile and apparel industry will also benefit through this initiative as now India will not face 5 per cent duty on textiles and garments, which will be a big advantage for Indian companies. India’s total apparel export to UAE was $1,609.4 million in 2020-21 (HS code 61, 62 combine) and 1,436.64 in 9 months of 2021-22. Its home textiles exports to the country increased by 32.46 per cent y-o-y to $259 million.
Negotiated in just 88 days, the 880-page deal also features a permanent safety mechanism to protect domestic businesses in both nations against sudden surges in trading volumes.