The hours leading up to Prime Minister Narendra Modi's arrival in Abu Dhabi, the capital of the United Arab Emirates (UAE), were marked with an announcement that signaled a major leap forward in the historic relationship between India and the UAE. The UAE announced that the economic partnership it had entered into with India was no ordinary event. Rather, it was a "significant milestone in the history of both nations."

The UAE's Minister of State for Foreign Trade, Dr. Thani bin Ahmed Al Zeyoudi, who made this statement, further elaborated in an interview that this partnership had big plans. In fact, the non-oil trade between the UAE and India, due to this partnership, is projected to skyrocket to an impressive USD 100 billion per year by 2030.

This breakthrough came about through the UAE-India Comprehensive Economic Partnership Agreement (CEPA), an initiative designed with the grand vision of ushering a new era of growth and opportunity. But what is this CEPA all about? It is an agreement that was signed on February 18, 2022, between India and the UAE. Prime Minister Narendra Modi represented India, while UAE President Sheikh Mohamed bin Zayed Al Nahyan represented the UAE. The agreement took effect on May 1, 2022, and its impacts are expected to be monumental.

Dr. Thani Al Zeyoudi, discussing the significance of the CEPA, said, "There is little question that the UAE-India Comprehensive Economic Partnership Agreement will come to be regarded as a significant milestone in the history of both nations." This statement emphasizes the importance and potential of this agreement, highlighting how instrumental it could be in shaping the future of both nations.

The CEPA is more than just an agreement. It is a tool designed to eliminate unnecessary trade barriers, create new platforms for investment, and open government procurement to each other's private sectors. By reducing or even removing tariffs on 80% of goods, it aims to bring about a new era of growth and opportunity. Ultimately, the goal is to boost bilateral non-oil trade beyond USD 100 billion by 2030.

But the benefits of the CEPA do not end there. As Dr. Thani Al Zeyoudi pointed out, the CEPA has brought about a marked increase in bilateral trade flows between India and the UAE. It has also made the East-West supply chains more robust and opened up a new trade corridor that links Asia with the Middle East and Africa.

This partnership has also resulted in significant investment from the UAE in diverse sectors of India, including retail, industry, food security, technology, healthcare, and logistics. Dr. Thani Al Zeyoudi has personally observed the far-reaching impacts of these investments.

These benefits were not just on paper. Major logistics providers have responded to these changes by increasing capacity on these routes. This includes Maersk's launch of the 'Shaheen Express' to link India to the UAE and Saudi Arabia, and SeaLead's offer of a new India-Dubai-East-Africa (IDEA) route.

Apart from boosting bilateral trade flows, the CEPA has also resulted in some significant new investment flows. The UAE's investments in India have touched several sectors, from retail and industry to food security, technology, healthcare, and logistics. There has also been excitement around renewable energy projects, such as a 300-megawatt hybrid plant in Gujarat, which boasts an innovative battery energy storage system.

By May 2023, CEPA had made a considerable impact on India's bilateral trade with the UAE, according to an official statement from the Ministry of Commerce and Industry. The bilateral trade between India and the UAE increased from USD 72.9 billion in April 2021-March 2022 to USD 84.5 billion in April 2022-March 2023.

This economic partnership has also impacted the export of key products from both nations. UAE has seen growth in the export of sectors like iron, steel, aluminium, and polymers. From the Indian side, there has been an increase in exports in areas like textiles, gems and jewellery, footwear, fruits and nuts, and automobiles.

Before his departure from India, PM Modi expressed optimism about the partnership between India and UAE. He said, "Our two countries are engaged across a wide range of sectors such as trade, investments, energy, food security, science & technology, education, fintech, defence, security, and robust people-to-people ties." He also added that he looked forward to discussions on how to deepen ties with President Sheikh Mohamed bin Zayed.

PM Modi also showed enthusiasm for the upcoming 28th Conference of Parties of the UNFCCC (COP28) that the UAE will be hosting. He stated that he was eager to exchange views on bolstering global cooperation towards accelerating climate action, facilitating energy transition, and implementing the Paris Agreement.

In a nutshell, the economic partnership between India and UAE, initiated through CEPA, promises a new era of cooperation, investment, and mutual growth, further strengthening the bond between these two nations. As we look forward to the fruitful outcomes of this partnership, we can't help but share the excitement of Prime Minister Modi who said, "I am confident that my visit to UAE will usher in a new chapter in our Comprehensive Strategic Partnership."