The United Arab Emirates and India have signed a wide ranging trade and investment pact that is expected to boost bilateral trade to over $100 billion within the next five years.
The trade agreement will encourage bilateral investments with gains in labor-intensive industries like Textiles, Gems and Jewellery, Leather Goods and Footwear, and Food Processing.
In addition to growing bilateral trade in goods to over $100 billion within the next five years, the deal is also expected to boost trade in services to over $15 billion.
Sectors set to benefit include business services, telecommunications, construction and development, education, the environment, the financial sector, health services, tourism, hospitality and maritime and air transport services, among others.
The UAE is India’s third-largest trading partner and second-largest export destination. And India is the UAE’s second-largest trading partner and largest in terms of exports.
This agreement will create additional jobs and improve the working environment for the large Indian workforce working in the UAE. It is likely to generate one million jobs in various labor-intensive businesses.
“India is one of our most important strategic partners and this deal brings us closer than ever before,” UAE de facto leader, Sheikh Mohamed bin Zayed Al Nahyan, said during a virtual summit with India’s Prime Minister, Narendra Modi.
Experts believe it is a historic future-looking agreement that will benefit both India and the UAE in the long run in various ways. Both countries shall now aim for its proper implementation to maximize their gains and leverage upon the several promising opportunities for growth and expansion.
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