Impact of India–UAE CEPA on Pharmaceutical and Chemical Exports: Opportunities and Challenges for Indian Exporters

Abstract

The India–UAE Comprehensive Economic Partnership Agreement (CEPA), implemented on 1 May 2022, represents an important development in bilateral economic relations between India and the United Arab Emirates. This study evaluates the implications of CEPA for Indian pharmaceutical and chemical exporters, with particular emphasis on market access, tariff reduction, export competitiveness, utilization challenges, and future growth opportunities. The study adopts a descriptive and analytical research design and relies exclusively on secondary data obtained from government reports, Directorate General of Foreign Trade publications, CEPA trade reports, export statistics, research journals, industry publications, and trade databases. Percentage, comparative, and trend-based analysis are used to interpret the supplied evidence. The data indicate that bilateral trade value increased from USD 72 billion in 2021–22 to USD 84 billion in 2023–24, while the post-CEPA export growth figure reported in the synopsis is 16.70%. Reduced tariff barriers and improved market access emerge as the principal perceived benefits, whereas documentation requirements and Rules of Origin compliance remain the leading operational challenges. The findings support the study’s conclusion that CEPA has strengthened the trade environment for pharmaceutical and chemical exports while highlighting the importance of exporter awareness, simplified procedures, and continued policy support for more effective utilization of agreement benefits.