Abstract
The paper examines the impact of the India-UAE Comprehensive Economic Partnership Agreement (CEPA) on the composition and the extent of bilateral trade between India and UAE. To understand the complementarity of trade structure and potential for trade cooperation, the paper employed indicators such as Revealed Comparative Advantage (RCA), Revealed Trade Advantage (RTA) and Revealed Competitiveness (RC), along with specialisation analysis. The augmented gravity models with the Fixed Effect Vector Decomposition and Poisson Pseudo-Maximum Likelihood estimation techniques were used to understand the trade impact of the agreement on both nations. The findings showed that India has had a more stable comparative advantage over the years than the UAE, and there is complementary trade. The overall impact of the CEPA is positive, with the trade projected to increase to US$113 billion within five years of signing the agreement. The study provides important insights into the India-UAE CEPA as a productive FTA for India and provides lessons for future bilateral agreements to maximise the trade potential with other major trading partners.
Keywords:
Article Details
- Year: 2025
- Volume: 46
- Issue: 1
- Pages: 27 - 54
- Accepted: 07.02.2025
-
DOI:
https://doi.org/10.5281/zenodo.16871602 -
Full Text (PDF)
2 Views 2 Downloads
How to Cite?
Narayan Saeel, B.P. Sarath Chandran (2025). Trade Potential of India UAE Comprehensive Economic Partnership Agreement (CEPA). Journal of Economic Cooperation and Development, 46(1), 27-54. https://doi.org/10.5281/zenodo.16871602
