UAE-India Trade Corridor Drives Down Import Costs, Boosts Quality for Dubai Retailers
The UAE-India Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, is proving to be a game-changer for businesses in Dubai, significantly reducing import costs while enhancing the quality and accessibility of Indian products in the local market.
Speaking at the Dubai-India Business Forum in Mumbai, Nilesh Ved, Chairman and CEO of Apparel Group, emphasized that the elimination of import duties under CEPA has created a win-win situation for both retailers and consumers in the UAE.
“Most of the items we import from India are now duty-free,” Ved said. “This has brought down retail prices, improved affordability for consumers, and driven higher sales volumes.”
Previously subject to a 5% import duty, Indian goods now enter the UAE at zero duty, thanks to CEPA. The result? Lower operational costs for businesses like Apparel Group and greater access to high-quality Indian products for UAE shoppers.
Boost in Sales and Product Quality
Established in 1996, Apparel Group offers over 85 international brands, including apparel, accessories, footwear, and cookware. According to Ved, sales of Indian-made products have surged post-CEPA, with noticeable improvements in quality as well.
“Lower prices have naturally translated to higher sales,” he noted. “Moreover, the competitive environment has pushed Indian manufacturers to elevate their product quality.”
Forum Coincides with Crown Prince's India Visit
The Dubai-India Business Forum was held in Mumbai to mark the first official India visit of Dubai Crown Prince Sheikh Hamdan bin Mohammed bin Rashid Al Maktoum. The event brought together top decision-makers and entrepreneurs from both nations to foster collaborative business ventures.
During the forum, UAE Minister of Economy Abdulla bin Touq Al Marri revealed that non-oil trade between the two nations surpassed $65 billion in 2024, well on track to exceed the $100 billion target by 2030—a milestone that experts believe could be achieved ahead of schedule.
Dubai: A Launchpad for Indian Entrepreneurs
Ved highlighted Dubai’s multicultural consumer base as a unique testing ground for Indian businesses aiming to scale globally.
“With over 200 nationalities living in the city, Dubai allows Indian companies to fine-tune their strategies before entering markets like the Philippines, Spain, or Egypt,” he said.
Entrepreneurs like Juzar Potia, founder of STEM education venture Duck Learning India, expressed optimism about expanding to Dubai following connections made at the forum.
“The forum helped me meet Dubai-based companies and explore promising partnerships,” Potia shared. “With support from Dubai International Chambers, I’m hopeful about establishing a presence in the UAE.”
