It came into effect from May 1.
The agreement opens the door for many sectors, particularly labour-intensive ones such as textiles, gem and jewellery, pharmaceuticals and agriculture, Goyal said while briefing the media along with the UAE Minister for Economy Abdullah Bin Touq Al Marri here.
The ministers launched ‘India-UAE Start-up Bridge’ at the India-UAE Partnership Summit, organised by industry body CII here.
“Clearly millions of jobs will be added if our exports which are now at about USD 36 billion, which is about nearly Rs 2.5 lakh crore, grows as we are planning. And my own guess estimate is this partnership can finally go up to about USD 250 billion of bilateral trade on both sides.
“So my sense is that this will give a big boost to economic growth, to jobs. And the opportunities it opens not only in the UAE, but in the larger ground for the African region. (It) should significantly give a bump up to the Indian economy as well,” Goyal said.
He added that the pact would not only open doors for Indian businesses to UAE but also to other countries as UAE is a transit point for large parts of Africa, CIS (Commonwealth of Independent States) countries, and the Gulf region.
CIS countries include Armenia, Azerbaijan, Belarus, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Russia, and Tajikistan.
Further, Goyal said that Indian pharma products will get immediate access to the UAE market and “we believe (bilateral) trade will grow to at least to USD 100 billion in the near future….Our own commitment is to take it to a much higher level”
According to the minister, the framework is expected to add a million jobs in India and provide opportunities to the startup ecosystem in the country and has huge potential for engagement on skill development and education.
“We are looking at significant investments as the UAE has committed over USD 100 billion of investments into India in manufacturing, infrastructure, (and) service (s). So the business will get a booster shot,” the minister said.
He informed that there are a large number of startups which have emerged in the last six years, with more than 65,000 registered with the ministry.
India also has over 100 unicorns with the third largest startup ecosystem in the world, he said.
The UAE minister said the pact will add 1.7 per cent GDP growth to their economy.
He also said the agreement is not just on products and commodities but also into services, adding that there are other opportunities that can come along.
“Now, the growth that we’re looking at, that we want to reach USD-100 billion dollars from USD 40 billion or so today, in the next decade… Our economic modelling showed that this is an opportunity of growth, it can actually reach that number,” the minister said.