May 1, 2022 marked a transformative phase in India-UAE logistics ties with the implementation of the Comprehensive Economic Partnership Agreement (CEPA), fostering trade opportunities and propelling bilateral trade to potentially reach US$ 100 billion in the next five years.
In the aftermath of Prime Minister Narendra Modi’s UAE visit, the UAE-India Business Council (UIBC), Jones Lang LaSalle (JLL), and Invest India collaborated to release an extensive report on ‘India-UAE collaboration in the logistics sector.’ This report analyses critical facets such as the UAE-India CEPA Agreement, India-Middle East-Europe Economic Corridor (IMEC), India-Middle East Food Corridor, and India-UAE Logistics Prospects. The insights delve into the synergies and prospects emerging from the strategic partnerships between India and the UAE.
The implementation of the UAE-India CEPA Agreement, eliminating or reducing tariffs on various goods, serves as a catalyst for the anticipated surge in bilateral trade. The report underscores the potential for trade volumes to reach US$ 100 billion within the next five years, fostering significant growth in India’s logistics sector. This surge in demand for transportation and warehousing services is expected to create an environment conducive to innovation and entrepreneurial ventures.
The report emphasises the transformative impact of the IMEC, a 7,200-km-long multi-modal corridor connecting India and Europe via the Arabian Peninsula. Envisioned to revolutionise trade and logistics, the IMEC promises reduced transit times, lower transportation costs, enhanced trade facilitation, economic integration, and fortified resilience in regional supply chains.
Likewise, the India-Middle East Food Corridor, focusing on food security, introduces innovative logistics solutions such as cold chain management and real-time monitoring to enhance supply chain efficiency. The collaborative efforts between India and the UAE in the logistics sector are poised to reshape the landscape, opening avenues for sustainable growth, economic integration, and enhanced resilience in the face of evolving global dynamics.
