India-UAE CEPA Sector Deep Dive: Who Is Winning and Who Is Underutilising

India-UAE CEPA at two years provides enough data to assess which parts of the bilateral are working and which are underperforming relative to CEPA potential.

Pharma — Thriving: Indian generic pharma in UAE has grown 24% post-CEPA. CEPA 0% duty on Chapter 30 pharma is fully utilised by large Indian pharma companies. SME Indian pharma exporters are the utilisation gap — they lack DGFT-authorised COO process and UAE Ministry of Health product registration (separate from CEPA tariff preference).

Engineering — Growing: UAE construction boom creates sustained demand for Indian structural steel, aluminium fabrications, electrical fittings, and construction hardware. Indian engineering goods report 0% CEPA duty has made pricing 5% more competitive versus Turkish and Chinese alternatives.

Agro-Food — Complex: CEPA eliminates duty but does not eliminate UAE food safety compliance (Abu Dhabi ADAFSA requirements). Indian agro-food exporters must comply with both Indian FSSAI export standards and UAE ADAFSA import standards — a dual compliance burden that limits SME participation.

Textiles — Opportunity: UAE is a major re-export hub for Indian textiles to Middle East and Africa. CEPA 0% duty makes UAE a cost-effective stocking and re-distribution point for Indian textiles targeting GCC and East African markets via Dubai transshipment.