The UAE has been India’s third largest export destination for engineering items despite the constraint of average 5 per cent import duty. “With the import duty now coming down to ‘zero’ we see the share of engineering goods in UAE’s total import increasing at a fast pace,” Desai added. Furthermore, Apparel Export Promotion Council (AEPC) Chairman, Narendra Goenka, said, “With India supplying $1,515 million of apparel to the UAE as compared to its total imports of $3,517 million, Indian apparel exports contribute a decent share of 43 per cent.” “The trade pact would result in a drop of 5 per cent import duty for Indian readymade garments. This will further strengthen the dominant position of Indian apparels in the UAE.” In addition, Goenka said the trade pact will particularly benefit the knitted garments segment and increase significant employment opportunities in clusters across India. The textiles and apparel industry in India is the second largest employer in the country providing direct employment to 45 million people and 60 million people respectively in the allied industries.

“Tracing the export chain, we find that our apparel exports to the UAE also cater to the apparel needs of Saudi Arabia, Kuwait, Bahrain, Oman and the UK,” AEPC Chairman added. “The UAE is a large retail market with players across the value chain, including major western fashion chains, wholesale buyers from North Africa and the Middle East.”