India-UAE CEPA Boosts Trade and Opportunities for Farmers, MSMEs

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India-UAE CEPA Creates New Opportunities

Union Commerce and Industry Minister Piyush Goyal said the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which started four years ago, has opened significant opportunities for Indian farmers, micro, small and medium enterprises (MSMEs), and other businesses.

He shared that trade in goods between India and the UAE has grown strongly, surpassing 100 billion dollars. Trade in services has also increased steadily, opening new markets and adding more value.

The Minister pointed out that growth in important sectors such as gems and jewellery, engineering goods, electronics, and agriculture is showing clear benefits.

He also noted that foreign direct investment (FDI) from the UAE into India, along with Indian investments abroad, shows the growing economic connection between the two nations.

Important Facts for Exams

• The India-UAE CEPA has been in effect since May 1, 2022.
• Non-oil trade between India and UAE rose by 34% year-on-year in the first half of 2025, reaching 38 billion USD.
• The agreement offers Indian exporters preferential tariff access on 97% of UAE tariff lines, covering 99% of Indian exports to the UAE by value.
• Key sectors benefiting include gems and jewellery, textiles, leather, footwear, sports goods, plastics, furniture, agricultural and wood products, engineering products, medical devices, and automobiles.
• India-UAE CEPA is expected to boost Indian engineering exports to the UAE by up to 92 billion USD, supported by UAE’s construction and industrial growth.
• The agreement has helped improve manufacturing, services, and agriculture sectors, supporting exporters and MSMEs, and providing farmers access to premium global markets.
• CEPA has lowered tariffs and reduced regulatory barriers, enhancing trade facilitation and digital connectivity between India and the UAE.