Better FTAs likely to boost India, UAE economies
Both countries can benefit from increasing cooperation in several areas of mutual interest such as energy, skills, education: Deloitte report
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New Delhi: Economies of India and the UAE can benefit significantly from their free trade agreement by sharing knowledge and best practices in several areas of mutual interest such as education, energy, skills and defence, according to a report by Deloitte.
Both the countries have implemented the Comprehensive Economic Partnership Agreement (CEPA) from May 1 this year to boost bilateral trade and investments. It is aimed at increasing the trade to $100 billion in the coming years.
"Under the preferential trade agreement, the two economies may benefit from sharing knowledge and best practices in several areas of mutual interest," the report said. It said the Indian economy is heavily dependent on crude oil imports to meet its domestic requirements and the current geopolitical tensions between Russia and Ukraine and shrinking supplies from Iran are further affecting macroeconomic fundamentals.
"These turbulences suggest that India must work towards decreasing its energy dependence by exploring alternative fuels and diversify its crude oil suppliers to ensure undisrupted supply," it said.
