An India-UAE free trade agreement will enable cumulative investment flows and help achieve desired export targets. Explain (200 Words)
Refer - The Hindu
Enrich the answer from other sources, if the question demands.
IAS Parliament 3 years
KEY POINTS
· India has embarked on a new journey a new free trade agreement (FTA) journey to be precise with renewed zeal and vigour.
· India’s approach towards FTAs is now focusing more on gaining meaningful market access and facilitating Indian industry’s integration into global value chains.
· This is a very welcome move, where the Government of India can be seen actively revisiting pending FTAs, entering into fresh negotiations and also being open to interim and mini-trade deals.
· The UAE has emerged as an important economic hub not just within the context of the Middle East/West Asia, but also globally.
· Although the UAE has diversified its economy, ‘the hydrocarbon sector remains very important followed by services and manufacturing. Within services, financial services, wholesale and retail trade, and real estate and business services are the main contributors’.
· India is aiming to achieve the U.S.$1 trillion of merchandise exports and As part of the GCC, the UAE has strong economic ties with Saudi Arabia, Kuwait, Bahrain, and Oman, meaning the UAE shares a common market and a customs union with these nations.
· Under the Greater Arab Free Trade Area (GAFTA) Agreement, the UAE has free trade access to Saudi Arabia, Kuwait, Bahrain, Qatar, Oman, Jordan, Egypt, Iraq, Lebanon, Morocco, Tunisia, Palestine, Syria, Libya, and Yemen.
