It was in May 2022 that India and UAE entered to Comprehensive Economic Partnership Agreement. Within weeks it has brought a favourable atmosphere for various business sectors in Kerala. The positive impacts have already started to reflect in the exports. It is expected that within six months there will be phenomenal growth in exports.
On the back of free-market terms, the tax on 80 per cent of export products will be reduced to 0 per cent from 5 per cent. Hence the exports from each sector are likely to witness 10 per cent to 30 per cent growth.
According to joint director of foreign trade (Kochi), KM Harilal, the body is planning to organize outreach programs with the Federation of India Chambers of Commerce across the state to sensitise traders about the positive impacts of the free market and how to make it an opportunity for improving the business.
Interestingly, data for the financial year 2021-22 shows that 7 per cent of India’s total foreign exports go to UAE. The export to UAE is worth $2,804.5 crore, while the state's share is $53.4 crore. Kerala’s export revenue is expected to grow further due to the new pact.