India is set to raise concerns over the rules of origin (ROO) for silver imports under the India-UAE Comprehensive Economic Partnership Agreement (CEPA), following a significant increase in silver imports since the agreement took effect. The issue will be discussed during the upcoming joint task force meeting between the two countries.

Commerce and Industry Minister Piyush Goyal, addressing media queries on the matter, said, “We have a joint trade committee that addresses such issues. Specific concerns about silver imports will be taken up in the meeting scheduled for next week in the UAE, and our team is preparing for the discussions.”

The Minister's comments came after the 12th India-UAE High-Level Joint Task Force on Investments meeting, co-chaired by Goyal and Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA), held in Mumbai on Monday. 

Surge in Bilateral Trade and Investments  
The task force acknowledged the significant increase in bilateral trade since the CEPA came into force in May 2022. Non-oil trade between the two nations rose to $28.2 billion in the first half of 2024, marking a 9.8% year-on-year increase. Additionally, the UAE has become India’s fourth-largest foreign investor, committing $3.35 billion across various sectors, a threefold increase from 2022.

Indian investments in the UAE also saw a notable rise, with $2.05 billion in 2023, exceeding the combined totals of 2021 and 2022.

Concerns Over Silver Imports
One of India’s primary concerns is the sharp rise in silver imports from the UAE, which jumped 5,853% to $1.74 billion in FY24, compared to just $29 million in FY23. The surge followed the implementation of concessional duties under the CEPA. 

In response, India reduced import duties on gold and silver to 6% from 15% for all countries in its latest budget to check imports from the UAE, which already enjoyed an 8% concessional duty under the trade pact. However, with duties set to reduce to zero over the next decade under CEPA, India is pushing for stricter ROO to prevent excessive imports at concessional rates.

Minister Goyal reassured that discussions with UAE officials, including his counterpart Thani Al Zeyoud, have already taken place. "The UAE has assured us that they will not take any steps that would harm India’s trade and business interests," he added.

Payment Platform Integration
In a move to strengthen economic ties, India and the UAE are also working on integrating their national payment systems, UPI (Unified Payments Interface) and AANI (UAE’s payment platform), to facilitate seamless cross-border transactions between the two nations.

The upcoming joint task force meeting is expected to address these critical issues, as both countries work towards further enhancing their trade and investment relationship under CEPA.