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28 May 2026International Relations3 questions

India-UAE CEPA — First-Year Trade Review and Strategic Significance

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Article summary

The India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force on 1 May 2022, became India's fastest-negotiated free trade agreement — completing in 88 days. In its first full year, bilateral trade grew 16% to reach $85 billion, making the UAE India's third-largest trading partner and second-largest export destination. The agreement covers 97% of India's exports to the UAE with zero or reduced tariffs, includes digital trade provisions, and provides a services chapter covering 11 sectors. India's key exports — gems and jewellery, engineering goods, and pharmaceuticals — saw the highest growth.

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recallTests whether you read the article and retained key facts.
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applicationTests whether you can apply the concept to a new scenario.
1Q
analysisTests whether you can reason across multiple related facts.
1Q

Sample questions — answers revealed after test

International RelationsRecallEasy

Q1. With reference to the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which of the following statements is correct?

AThe CEPA was negotiated in 88 days, making it the fastest FTA negotiation in India's history, and it came into force on 1 May 2022.
BThe CEPA grants zero or reduced tariffs on 97% of UAE exports to India, while India receives duty concessions on 80% of its exports to the UAE.
CThe UAE is India's second-largest trading partner after the USA, and the largest source of remittances to India among Gulf nations.
DThe CEPA excludes petroleum products and textiles from preferential tariff treatment, as these are classified as sensitive sectors for India.
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International RelationsApplicationMedium

Q2. A policy analyst argues that the India-UAE CEPA's Rules of Origin provisions are as important as its tariff concessions. Which of the following scenarios would the Rules of Origin clause in the CEPA be MOST directly designed to prevent?

AIndian pharmaceutical companies avoiding UAE's 5% import duty by routing shipments through Oman before re-exporting to the UAE.
BChinese goods being minimally processed in the UAE — falling below the 40% local value addition threshold — and then exported to India at CEPA preferential tariff rates.
CUAE-origin gold and silver entering India at zero duty, undercutting India's domestic gems and jewellery sector that was explicitly protected under the CEPA exclusion list.
DIndian IT service professionals being denied credential recognition in the UAE despite the services chapter of the CEPA, leading to effective non-tariff barriers.
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International RelationsAnalysisHard

Q3. Consider the following statements regarding the strategic dimensions of the India-UAE CEPA and India's broader FTA policy: 1. The India-UAE CEPA was negotiated faster than the India-Australia ECTA, which came into force in April 2022. 2. Despite the CEPA's services chapter, Indian IT and healthcare professionals continue to face non-tariff barriers in the UAE primarily because credential recognition requires separate bilateral agreements beyond the CEPA framework. 3. A future India-GCC bloc FTA, if concluded, would represent India's single largest trade agreement by partner GDP, with the UAE CEPA serving as a potential template. 4. The UAE is India's largest source of remittances globally, reflecting the significant Indian diaspora presence of 3.5 million people in the UAE. Which of the statements given above are correct?

A1 and 3 only
B2 and 3 only
C1, 2 and 4 only
D2, 3 and 4 only
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