The UAE-India CEPA Council (UICC) was launched on the sidelines of the Vibrant Gujarat Summit in January. The two countries implemented the Comprehensive Economic Partnership Agreement (CEPA) in May 2022.
Partnerships in sectors such as aviation, fintech, edtech, health-tech and clean energy tech will drive the UAE and India's growth story in the coming years, CEPA Council Director Ahmed Aljneibi said on Tuesday.
The UAE-India CEPA Council (UICC) was launched on the sidelines of the Vibrant Gujarat Summit in January. The two countries implemented the Comprehensive Economic Partnership Agreement (CEPA) in May 2022.
He also said there is a huge potential to improve air transportation and air cargo links between the two nations.
“Partnerships in fintech, edtech, health-tech and clean energy tech will undoubtedly drive the next chapter of the UAE and India's shared growth story,” Aljneibi said, adding that leading startup hubs with deep technology prowess, the two countries' digital economies are also gaining tremendously from the CEPA.
Indian firms are leveraging UAE's 5G infrastructure and logistics networks to offer digital solutions across the region, he added.
The UAE is India's third-largest trading partner behind China and the US, respectively. Trade between the UAE and India increased from USD 72.9 billion to USD 84.5 billion between 2021-2022 and 2022-2023, registering an increase of 16 per cent.
He said that with improved air, sea and digital connectivity between the two countries, trade relations can achieve even greater heights.
“In particular, there remains great potential to improve air transportation and air cargo links between the two nations. For example, bilateral seat capacity arrangements between the airlines of UAE and India are relatively low, with the partnership remaining underserved in this domain,” Aljneibi said.
He added that the capacity (seat sharing) is currently limited to around 1,34,000 passengers per week, while for cargo, it is 4,000 tonnes per week.
“With passenger and cargo routes straining at capacity, a visionary approach that builds upon the spirit of the CEPA, which fully unlocks and liberalises bilateral aviation partnerships would have a massive multiplier effect on the UAE-India economic relationship and serve as a win-win outcome to UAE and Indian consumers and business communities alike,” he said.
He added that it is essential that both UAE and Indian aviation carriers are able to fully benefit from the dynamic strategic partnership that has emerged between the UAE and India since the signing of the CEPA and are able to expand connectivity in a manner that truly benefits this relationship.
“Separately, the UICC sees significant untapped potential in the role Indian MSMEs, particularly those situated in secondary Indian cities, can play in catalysing the bilateral economic partnership,” he said, adding that the council's immediate focus is to support smaller companies seeking to internationalise.
