 agencies
NEW DELHI, Feb 21: Average price of vehicles shipped to the United Arab of Emirates (UAE) is expected to come down from $ 12,829 to $ 12,218 after the India-UAE free trade pact kicks in giving edge to the domestic automakers over their global peers in the key Gulf market.
"India has a strong market presence in commercial vehicles and two-wheeler segments, where the gains will be higher," as per a Commerce Ministry note on sector-specific benefits from India-UAE trade pact.
Automobile export to the UAE is projected to increase to $ 160 million over next five years.
It is hoped that immigrants and locals of UAE who prefer affordable new vehicles would benefit from the new trade deal. Given the strategic location of the UAE, the automakers in India can expand their presence towards the GCC countries and Africa. India and the UAE signed the Comprehensive Economic Partnership Agreement (CEPA) last week aiming at doubling the bilateral trade to $100 billion in next five years.
The trade agreement is expected to be implemented by May this year.
From the day one of the implementation, 90 per cent of India's exports to the UAE in value terms would have access to the UAE market at zero duty and cover all labour-intensive sectors such as textiles, engineering goods, gems & jewellery, pharmaceuticals & medical devices, plastics, automobiles, leather & footwear and agriculture.
On another 9 per cent of items in electronic goods, chemicals and petrochemicals, articles of stone, cement, ceramics and machinery, duty will come down to zero within 5 to 10 years. |
