CEPA will safeguard farmers, boost food processing sectors: Goyal

The India-UAE Comprehensive Economic Partnership Agreement will boost the food processing sector while protecting the interest of farmers in India, Union Commerce and Industry Minister Piyush Goyal said on Monday.

Goyal, while interacting with industry representatives here, assured that farmers have been fully protected in the India-UAE CEPA while the food processing sector will get a boost.

"An additional increase in exports of agricultural products are projected at $850 million over the next five years," he said.

With CEPA, India's market access will increase and with five more countries coming on board, access to the Middle East will be enhanced, he said.

The minister further stated that with tariff concessions offered to the UAE in gold will lower input costs boosting the exports to the UAE.

"This is expected to boost gems and jewellery (mainly plain gold and gold studded jewellery) exports to the UAE to reach $10 billion (around Rs 74,000 crore) in 2023," Goyal said.

Similarly, the plastics industry will witness a big jump in exports as under CEPA the raw materials costs are expected to become cheaper leading to lower input cost, he noted.

During 2020-21, India had exported plastics worth USD 418 million to the UAE, he added.

The Union minister said both India and the UAE believe in the principles of reciprocity, rule of law and transparency, therefore, India-UAE CEPA is a win-win agreement for both nations.

Indian industry can explore avenues for start-ups in UAE while the start-ups may find investors in the Emirates, the minister added.

With the CEPA Agreement India and UAE aim to increase their bilateral trade to over USD 100 billion in the next five years, Goyal said.

However, he said the potential for trade between the two nations is even bigger, we will surpass the target we have set for ourselves.

"The Foreign Trade Agreement comes at an opportune time while we are working towards and Aatmanirbhar Bharat. We are also negotiating FTAs with other countries such as the UK, Australia, EU, Israel among others," Goyal added.