It seems CEPA is more tailor-made to Telangana because the state has several sectors
which have greater export potential: Dr E. Vishnu Vardhan Reddy, IFS, Special Secretary,
Investment Promotion & NRI Affairs, Joint Managing Director (TSTPC)
Hyderabad District has the largest number of USFDA-approved manufacturing
pharmaceutical units in the world, New Jersey only follows next: Dr E. Vishnu Vardhan
Reddy
Hyderabad, July 28, 2023…….The Federation of Telangana Chambers of Commerce and
Industry (FTCCI) in association with UAE-India Business Council (UIBC), New Delhi organised
a Business Session on Comprehensive Economic Agreement (CEPA) and Related Business
Opportunities in the city at Hotel Park, Rajbhavan Road on Thursday night.
FTCCI is the most vibrant regional chamber in India. UAE – India Business Council (UIBC) is
the only Official Joint Business Chamber set up by both the Governments–India and the UAE
for promoting economic synergy between the UAE and India.
The session aimed to highlight the Comprehensive Economic Partnership Agreement (CEPA)
& Related Business Opportunities between the UAE and Telangana, India. It focused on
sectors such as Plastics, Pharmaceuticals, Gems & Jewellery many others informed Mr.
Mukesdh Kalra, Head–Business, Development, UIBC.
H. E Aaref Alnuaimi, Consul General of UAE at Hyderabad and Dr E. Vishnu Vardhan
Reddy, IFS, Special Secretary, Investment Promotion & NRI Affairs, Joint Managing
Director (TSTPC) were Chief Guests.
Addressing the gathering Dr Vishnu Vardhan Reddy spoke about how Telangana could best
use CEPA. CEPA is a Comprehensive Economic Partnership Agreement (CEPA) that is a free
trade agreement between two countries. In this case, it is between UAE and India.
CEPA is more comprehensive than Free Trade Agreements. The CEPA provides preferential
market access for over 80% of products traded between India and the UAE. The CEPA covers
11 broad service sectors and more than 100 sub-sectors, such as business services,
communication services, financial services, tourism, and transport services
The Significance of the India-UAE CEPA is it is expected to increase bilateral trade in goods
to USD 100 billion within five years of the signed agreement and increase trade in services
to USD 15 billion, leading to wider social and economic opportunities in both nations.
Addressing the 200-plus trade gathering in this light of background Dr Vishun Vardhan
Reddy said it looks like CEPA was more tailor-made to Telangana, not because the chief
negotiator of this (Mr. Srikar K. Reddy), was from Telangana, but because of our export
potential and strengths of several sectors such as pharmaceuticals, engineering goods,
electronics, chemicals and minerals as well as agro products.
The Telangana state stands to benefit from the agreements, Dr Vishnu Vardhan said. The
state wants its exports to grow. Telangana has got huge potential. The state stands first in
several areas in India. One-third of human vaccines are produced here. Accounting for 40
per cent of the total bulk drug production in India, Telangana is known as the bulk drug
Capital of India. Hyderabad District has the largest number of USFDA-approved
manufacturing pharmaceutical companies for a single province in the world which is 214
units. The second largest is in New Jersey with 189 units. he said.
Gems and Jewellery is another promising sector for exports, which are likely to record
double-digit growth. Food Processing is another promising sector with export potential.
Today we are a number of rice-producing states in India. Last year we beat Punjab in rice
production. Five Colours revolutions—green, white, yellow, pink and blue to propel
Telangana to the next phase of growth, he informed
Speaking further he added that soon India’s largest freshwater aqua park is coming up in
Telangana. India’s biggest Textile Park “Kakatiya Mega Textile Park is coming up in
Warangal spread over 1350 Acres. It is the largest Textile Park in India. It boasts of fibre
to fashion. Chief Minister Mr K Chandra Shekhar Rao is likely to inaugurate it in
September. The park is fully occupied. We have identified Furniture and Toys as a new
emerging sector to focus on. A focused Toys Park, an exclusive Furniture Park, and a
dedicated Gems and Jewellery Park are also coming up in the state. The state is also
working on revamping its export strategies. We will have comprehensive strategies. The
work is in progress and shared with the senior foreign affairs bureaucrat. UAE is a priority
country for Telangana state for exports, he said.
Giving his welcome address, the newly sworn-in President of FTCCI Mr. Meela Jayadev said
it is the first anniversary of India-UAE CEPA implementation. This business session is timely
and topical too. CEPA is the growth engine for India-UAE bilateral trade and makes a
significant impact on India’s bilateral trade with the UAE especially India’s exports to the
UAE. India is UAE’s second-largest trading partner accounting for 9% of its total foreign
trade and 14% of non-oil exports. Also, the UAE is India’s third biggest trade partner. FTCCI
works with larger industries, MSMEs and small businesses and we have seen big potential in
our exporter members from Telangana contributing significantly to our country’s exports.
Mr Sharad Agarwal, CEO-India, Emirates NBD Bank and Board Member of UIBC gave
opening remarks. India and UAE’s long friendship was further cemented with CEPA. CEPA is
a game changer. It helps in the speed of processing of trade.
A panel discussion on Business Opportunities Post India-UAE CEPA was held. It was
moderated by Kunal Wadhwa, Partner PwC. Giving his opening remarks explained how CEPA
is different from FTA (Free Trade Agreement)
Mr Anurag Sehgal, MD of Price Waterhouse & Co. LLP said the pandemic made every
country release to the fact to have a reliable trade partner. The international trade
community is looking at India as the most reliable and secure trade partner.
Unnikrishnan, Joint Director General of FIEO-The Federation of Indian Export Organisations
an apex body of Indian export promotion organisations set up jointly by the Ministry of
Commerce, Government of India and private trade and industry. India signed 13 FTAs (Free
Trade Agreements) so far for ensuring greater market access for domestic goods and
promoting exports. The booming pharma and jewellery sectors have propped up
Telangana’s exports.
Another panellist R Uday Bhaskar, Director General Pharmexcil observed that the pact CEPA
will boost bilateral merchandise trade and it is likely to expand the presence of Made-in-
India medicines in Middle Eastern countries. India’s exports to the UAE hit US$31.3 billion in
FY 2022-23 due to the CEPA trade deal. Indian companies are benefitting immensely from
this he said.
Mr.Vidyasagar Hariharan, Vice President, Trade Product Manager, Global Transaction
Banking, Mashreq India said CEPA is much more than FTA. It is a win-win pact for both
countries. It benefits MSMEs. UAE is the gateway to Africa.
Mr. Ananthanarayana S. Partner, Price Waterhouse & Co LLP asked What is the difference in
CEPA compared to other free trade agreements? CEPA is more comprehensive and
ambitious than an FTA because it includes services, investment, IPR, government
procurement, disputes, and regulatory aspects of the trade. An FTA, in contrast, focuses
only on goods. The other salient features are the safeguard mechanism of domestic trade.
Whenever imports surge and cause a threat to domestic industry, it safeguards. The
mechanism is inbuilt in this among others he said.
Percy Avari, Country Manager, Aramex India spoke about the synergetic role of logistics in
India-UAE CEPA’s Triumph.
Ms Ebtesam Alkaabi, Head of Sales, Jebel Ali Free Zone (JAFZA), Dubai making a
presentation on it said that it is a community and ecosystem where industries such as
logistics, e-commerce, petrochemicals and 14 other industries thrive.
Mr AVPS Chakravarthi, Chair of, the International Trade & Business Relations Committee,
FTCCI said the Al Minhad area, the 84 km stretch, in the United Arab Emirates, renaming as
‘Hind City’ by the ruler of Dubai, Sheikh Mohammed bin Rashid Al Maktoum shows India and
UAE affinity.
Mr Shubhransh Srivastav, Head of Corporate Affairs of DP World, an Emirati multinational
logistics company based in Dubai, United Arab Emirates, specialising in cargo logistics, and
port terminal operations, responding to Dr E. Vishnu Vardhan Reddy’s appeal to look at
Telangana as an investment opportunity, said that the world view of the Telangana state
was that of the most enabling state. We are keenly interested in Telangana. We have
already heavily invested in India. You will see me and our company more often here. We
ensure seamless and painless trade, he added.
Mr Suresh Kumar Singhal, Senior Vice President and Ms Khyati Naravane, CEO of FTCCI and
others graced participated in the business session
