A BLUEPRINT FOR FUTURE TRADE DEALS: The first 0%-rated imports from India have started arriving in the UAE, the most visible gains from the sweeping CEPA deal the nations struck in February and went live with on May 1. More than 90 per cent of goods come under the zero or lower duty tariffs, easing the path for two-way trade to close in on $100 billion in five years. The smoother flow of goods and services will, however, not be the only gains that will emerge from the alliance – joint investments or access to investments to turbo-charge growth will be the next obvious step. Key sectors in India such as agriculture, pharmaceuticals, industrial and even new-fangled spaces such as fintech will likely benefit. Trade is the most visible beneficiary from CEPA, but watch out for those investment flows. The big wins will likely happen there. [COMMENT BY: Manoj Nair, Business Editor]
Reuters