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Logistics opportunities / benefits due to India UAE FTA

The governments of the United Arab Emirates and India have jointly signed a free trade agreement. This is the first-ever bilateral agreement signed between the UAE and India. The main aim of this agreement is to offer protection for local industries. This agreement also helps establish a platform for local enterprises in the international markets of Africa and the western parts of Asia.


By signing this agreement, the Indian government looks to fetch greater access and participation in the markets of the United Arab Emirates for products like processed food, agricultural produce, precious gemstones, jewelry, engineering goods, textiles, apparel, pharmaceutical items, and chemicals. While speaking of services, the governments of India and UAE are considering signing mutual recognition agreements for smoothening the movement of various professions and professionals between the two nations.


The most important advantage of this agreement is the reduction of import duties. Thus, most products can be exported and imported between the two countries by paying minimal import duties. However, a specific list of items stands exempted from this provision. But on broader aspects, a minimum of 80% of the products exported from India to the UAE are likely to be delivered duty-free right from when this bilateral agreement is put into force.


There is ample opportunity waiting to be tapped by the Logistics industries with the new trade route to open soon.