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LOGIX NAFL
NAFL President Nadia Abdul Aziz suggests a strategic logistics corridor between India and UAE; Indian logistics market estimated to grow to US$ 380bn in 2025
On 18 February 2022, India and the United Arab Emirates, inked a Comprehensive Economic Partnership Agreement (CEPA) that is being characterized as a major trading landmark. The event was innaugurated by H.E. Dr. Thani Al Zayoudi, UAE Minister of State for Foreign Trade.
The milestone pact is aimed at providing a major boost to the trade of goods and services between the nations.
The mega deal was signed during a virtual summit meeting between Narendra Modi, Prime Minister of India and HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces. H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation spoke on the role of customs and smart services and cooperation between Dubai Customs and India customs in relation to trade facilitation and AEO certification services recognition between both nations.
Ushering in prosperity
CEPA paves the way for a new era of joint economic growth and prosperity in the two countries, improves mutual access to markets, enhances economic and investment opportunities and paves the way for broader prospects, H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation.
Speaking at the recently concluded 3rd Edition of LOGIX India, in Dubai, supported by the UAE’s National Association of Freight and Logistics (NAFL), Musabih noted that the agreement aims to raise the value of non-oil trade from US$ 40bn annually to US$ 100bn within five years, which creates tremendous opportunities for the business community and companies in both countries.
The Central Government will develop four Logistics Parks and up to 100 Cargo Terminals in providing a fillip to the logistics sector. Economic zones like textile clusters, pharmaceutical clusters, electronic parks and more will be covered.
Global Supply Chain interviewed Dr Ajay Sahai, Director General & CEO of the New Delhi-headquartered Federation of Indian Export Organisations (FIEO), on the sidelines of the recently concluded 3rd Edition Logix held in Dubai association with NAFL.
Global Supply Chain (GSC): What is your take and overview of this 3rd Edition Logix held in Dubai, UAE?
Dr. Ajay Sahai (AS): FIEO was greatly enthused and motivated to host the 3rd Edition Logix in Dubai, UAE. Firstly, in light of the US$ 100bn mega trade deal CEPA signed by India and the UAE, the agreement is a big boost to two-way trade between the two countries and opens new opportunities and vistas for the logistics industry for both nations.
We recognize the UAE to be the logistics hub of the Middle East and we hope to capitalize on these opportunities present. To this end we in India want to partner and associate with companies in the UAE to develop integrated logistics solutions with new efficiencies and extensive digital usage for mutual good.
We in India are excited about these prospects and the implications it has for companies, logistics services providers (LSPs) and for all stakeholders on both sides.
We chose to host the 3rd edition Logix in Dubai in recognition of its preeminence and well-regarded position in the logistics industrial vertical.
GSC: In real terms what concrete benefits are in store for Indian logistics companies?
AS: Indian logistics companies are poised for growth as more investment becomes available both from the Government and private sectors. The Indian Government is committed to supersize and expand infrastructure across the country.
Approved in October 2021, the Prime Minister Gati Shakti Initiative for logistics empowerment aims to provide multimodal connectivity to various economic zones to integrate the infrastructure linkages holistically for seamless movement of people, goods and services to improve logistics efficiency.
On the cards is also the decision by the Central Government to develop four Logistics Parks and up to 100 Cargo Terminals in providing a fillip to the logistics sector.
Economic zones like textile clusters, pharmaceutical clusters, electronic parks and more will be covered to make Indian businesses more competitive globally by cutting down the logistics costs and ensuring proper linkages for local industry and consumers.
Furthermore, in addition to the Central Government, individual State Governments are also in the race to capitalize and take advantage of emerging prospects. Some State Governments are also offering incentives and sops to attract investments and provide new employment vistas.
GSC: What is your assessment of the 3rd Logix event in Dubai?
AS: Firstly, we were fortunate to partner with NAFL. The officials here were instrumental and involved in organizing the event and we value their input and expertise.
We are here for the long haul and hope to forge new partnerships and alliances going forward. We are excited about the new opportunities that will blossom in the spirit of CEPA and the expansion of trade volumes between the brotherly countries. We are optimistic about the new developments going forward.
At LOGIX India 2022 participating companies displayed solutions for improving cost effectiveness and operational efficiencies for logistics, investment opportunities in infrastructure & Warehousing and technology integration and IT enablement.
H.E. Dr. Thani Al Zayoudi, UAE Minister of State for Foreign Trade H.E. Ahmad Mahboob, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation.
Unleashing opportunities
Key logistics players in India and UAE utilised the three-day event, held at Hotel Le Meridien Dubai, to work out ways and means to improve the prospects of the freight and logistics market.
“From strategic cooperation, it has also established tremendous opportunities in vital sectors such as trade, investment, hospitality, aviation and renewable energy and petrochemicals, noting that the UAE, thanks to its advanced and pioneering services, establishing its position as a major logistics gateway for the flow of international trade and investment around the world,” continued.
Logistics Corridor
Nadia Abdul Aziz, President, UAE’s National Association of Freight and Logistics (NAFL) suggested a strategic logistics corridor apart from a trade corridor for which more investments should be made into sea freight between the two countries, so that logistics cost will be reduced.
Nadia said more synergy should be created between the Indian and the UAE freight forwarders, who will be the main strategic people who facilitate more trade between the two countries.
“If a logistics corridor is created, the cost can be reduced, so also the food inflation if smart logistics is applied,” she affirmed.
Trade diversification
Omar Alkhan Abdulla, Director of International Offices, Dubai Chamber, asserted that the target of US$ 100bn can be achieved much before the fiveyear target if the trade is diversified and India rediscovers itself.
“Dubai Chambers has plans to open two or three more offices in India, apart from its one in Mumbai. With all these steps, we hope the target can be achieved much before five years. The LOGIX conference has helped in moving people closer,” he observed.
“Dubai Chamber, in collaboration with the Confederation of Indian Industry (CII), plans to increase the roadshows to help India rediscover it in different regions. We are also trying to attract more Indian companies and Indian multinationals and increase the trade and trade diversification,” he further added.
Advantage CEPA
“The event is an ideal opportunity for the cargo and logistics organisations to meet and set targets as spelt out in the CEPA. The Indian logistics market is estimated to grow to US$ 380bn in 2025 and the freight and logistics market in UAE will generate over US$ 31.41bn in 2026,” stated Humaid Bin Salem, Chairman, International Chamber of Commerce (ICC), UAE.
Dr Ajay Sahai, Director General & CEO of Federation of Indian Export Organisations (FIEO) suggested the setting up of a permanent India Mart in the UAE, on the same lines of the longestablished China Mart in Dubai.
“We want Indian products to be showcased in Dubai, so that we look beyond the UAE for marketing them in the entire GCC and Africa, as there are lots of buyers from Africa. They come to Dubai for placing orders, but not travelling to India. If Indian products are displayed here, they can place orders and we can back the mart with warehousing and distribution centre,” he stressed.
UAE-India mega deal CEPA to be operational in one month
NAFL, FFFAI sign MoU for training, women, and youth empowerment
The pivotal Comprehensive Economic Partnership Agreement (CEPA) signed by the UAE and India will be operational within one month, by latest end April 2022, reliable sources have pointed out.
The mega agreement will simplify customs procedures, reduce logistics cost and open new opportunities for professional services, officials said at the closing of the 3rd Edition of LOGIX India, in Dubai, supported by the UAE’s National Association of Freight and Logistics (NAFL).
The three-day logistics conference concluded with a valedictory session at the India Pavilion at Expo 2020 Dubai addressed by top officials from both the countries.
LOGIX
LOGIX was organized by the Federation of Indian Export Organisations (FIEO) and supported by Federation of Freight Forwarders Association in India (FFFAI) and NAFL (UAE).
Nadia Abdul Aziz, President of the UAE’s National Association of Freight and Logistics (NAFL) said CEPA will boost UAE’s logistics sector which contributes more than 14% to Dubai’s GDP.
“With CEPA in place, Indian products can penetrate the UAE market through which they can enter the GCC, Arab League markets, Commonwealth of Independent States (CIS), Africa and beyond,” she added
Meanwhile, a Memorandum of Understanding (MoU) was signed between NAFL and FFFAI. The MoU covers mutual cooperation of the two federations of freight forwarders, exchange of knowledge, technology/innovation, women empowerment and youth programs, and exchange capacity building programs.”
“The MoU provides for trade support, empowerment of women and youth, skill development and training and exchange of logistics students,” said Nadia.
New era of growth
Earlier, H.E. Ahmed Mahboob Musabih, Director General, Dubai Customs and CEO, Ports, Customs and Free Zone Corporation, said that the CEPA will pave the way for a new era of joint economic growth and prosperity in the two countries, improves mutual access to markets, enhances economic and investment opportunities and paves the way for broader prospects.
According to industry professions, the Agreement, endorsed by HH Sheikh Mohammed Bin Zayed Al Nahyan, the Crown Prince of Dubai and Deputy Supreme Commander of the UAE Armed Forces and Indian Prime Minister Narendra D. Modi in a recent virtual meet, will simplify customs procedures, reduce logistics cost, open new opportunities and create jobs
It must be noted that India has now crossed the US$ 400bn benchmark in annual exports.
Key Logistics players in India and UAE utilized the recently concluded the threeday meeting, to work out ways and means to improve the prospects of the freight and logistics market and deliberate on a wide number of issues.
Logistics: The next opportunity for India
In a globally competitive scenario, operational and logistics efficiency determines the location and movement of goods. Freight and logistics networks are realigning according to the location of production and consumption activities, creating the hub-and-spoke models that are needed to improve freight and logistics performance.
Logistics is regarded as the backbone of the economy, providing efficient and cost-effective flow of goods on which other commercial sectors depend upon.
India has made substantial progress in trade-related logistics reflected in leading global indices. India scored 90.3 per cent in 2021 in the United Nations Economic and Social Commission for Asia Pacific’s (UNESCAP) latest Global Survey on Digital and Sustainable Trade Facilitation, a remarkable jump from its score of 78.5 per cent in 2019, on account of improvement in scores of five key indicators.
H.E. Humaid Bin Salem, Chairman, International Chamber of Commerce (ICC), UAE.
CEPA Free Trade Agreement
India and UAE signed the historic Comprehensive Economic Partnership Agreement (CEPA) on 18 February 2022 aimed at boosting the merchandise trade between the two countries to US$ 100bn over next five years.
The deal was signed during the virtual summit meeting between the leaders of the two countries—the Hon’ble Prime Minister of India, Shri Narendra Modi and HH Sheikh Mohamed Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces.
India, celebrating its 75 years of independence and UAE, celebrating 50 years of its foundation are at an appropriate time to reset the relationship between two nations and take it to greater heights than ever before.
Logistics sector will be the enabler for this mega agreement. Join us at the 3rd edition of LOGIX India 2022 and meet the key logistics players in India and UAE.
FIEO—Profile
The Federation of Indian Export Organisations popularly known as ‘FIEO’, is the apex body of the Government recognised Export Promotion Councils, Commodity Boards and Development Authorities in India.
Set up in 1965 by Ministry of Commerce, Government of India to focus the efforts of all stakeholders engaged in promotion of trade from the country, FIEO is partner of Government of India to boost International Trade from India.
FIEO provides the crucial interface between International Trading community of India with the Central and State Governments, Financial Institutions, Ports, Railways, Surface Transport and all engaged in Export Trade Facilitation.
The Federation directly and indirectly serves the interests of over 200,000 exporters from every Industry and Services sector in the country.
