Maharashtra has been a clear beneficiary from India-UAE CEPA deal – and there is more to come
India’s economic powerhouse will continue to benefit from CEPA possibilities
The 54th Annual Meeting of the World Economic Forum in Davos beckons us to delve into discussions that will shape the global economic landscape.
The ‘Rebuilding Trust’ theme is a poignant reminder of the need for transparency, consistency, and accountability in our actions. Maharashtra, the economic powerhouse of India, hopes to be not just a participant but a catalyst for this transformation.
We also hope to use WEF as an opportunity to showcase the benefits of our stability and dependability in a world filled with instability.
The India-UAE CEPA deal has unfurled new avenues for Maharashtra, a state that contributes significantly to India's GDP. Since its initiation on May 1, 2022, the CEPA aspires to elevate bilateral trade between India and the UAE from $60 billion to $100 billion within the next five years.
This agreement is more than just a trade deal; it's a key to unlocking doors for collaboration, innovation, and shared prosperity. Already, UAE-based companies have invested over $35 billion in India, with a considerable portion flowing into Maharashtra. This infusion of capital brings not just financial gains but also the promise of technological advancement, transforming the state's economic landscape.
Our exports to the UAE have soared, with a remarkable 23 per cent increase in the first year post-CEPA implementation. Textiles, electronics and engineering goods - the backbone of Maharashtra's exports - are set to make a more significant mark in the UAE market, thanks to the elimination of tariffs. This opens up avenues for our businesses to thrive and expand in the international arena.
The CEPA is a two-way street, creating an environment conducive for UAE companies to flourish in Maharashtra. It beckons foreign investment into our manufacturing, services, and agriculture sectors, promising employment opportunities and economic growth. The exchange of technology and knowledge between Indian and UAE companies is a cornerstone of this agreement, fostering innovation and competitiveness.
Removal of tariffs
Crucially, the CEPA heralds a new dawn for Maharashtra's agricultural sector. The elimination of tariffs on grains, vegetables, and fruits translates to greater access to the UAE market for our farmers. This not only boosts the agricultural economy but also ensures a fairer and more prosperous future for those toiling the land.
As we navigate the world economic landscape at the World Economic Forum, India looks to fortify its ties with the UAE market. Maharashtra’s commitment to becoming a $1 trillion economy, the first in India, echoes our ambition to not just participate but lead in the global economic resurgence.
The achievements showcased at the 2022 World Economic Forum's annual meeting at Davos, where MoUs worth $17 billion were signed, exemplify our state's allure for global investors. With strategic partnerships spanning diverse sectors such as infrastructure, renewable energy, information technology, and agriculture, Maharashtra is poised for a transformative journey.
Our vision for the future is not just economic growth but inclusive development that touches the lives of every citizen. The journey may be challenging, but with the support of our international partners, especially the UAE, Maharashtra is ready to navigate the complexities of the global economic landscape.
As the Chief Minister of Maharashtra, I extend a warm welcome to businesses, investors and innovators from the UAE and around the world. Let us join hands in this journey towards economic prosperity, mutual growth, and a future that transcends boundaries.
Jai Hind and Jai Maharashtra…