Post FTA, non-petroleum exports to UAE up 14% in June-August: Govt

The commerce and industry minister Piyush Goyal on Sunday said that India’s non-petroleum exports to the United Arab Emirates (UAE) grew 14 per cent year on year to $5.92 billion during June-August, from $5.17 billion a year ago.

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which kicked in on May 1, is already creating a ‘significant positive impact’ on the trade between the two nations. The government said it did not include the month of May in the analysis as it is considered a transitory period.

“It is pertinent to note that India’s global non-petroleum exports during the same period (June-August 2022) grew by three per cent on an annual basis. This implies the growth rate of India’s non-petroleum exports to the UAE is almost five times that of India’s non-petroleum exports to the (rest of) world,” an official statement said. The jump was primarily led by gems and jewellery, electrical equipment, among other items.

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The statement added that the non-oil export growth was witnessed amid significant macroeconomic headwinds such as the conflict in Ukraine, Covid-19 lockdowns in China, rising inflationary pressure, expected policy tightening in advanced economies, global growth slowdown and consequent reduced demand, reduction in global merchandise trade, among others.

The data further showed that non-petroleum imports to UAE, during the same three-month period grew one per cent on year to $5.61 billion during the three-month period ended August.

“Indian exports are likely to increase further in the coming months, with increasing use of the CEPA by exporters and with dedicated efforts from the Department of Commerce, in association with the Indian Mission in the UAE, through the organisation of a series of trade promotion events in the UAE during the current financial year,” the statement said.