Virtual Trade Corridor

What is in the News ?

• India and the UAE are exploring creating a virtual trade corridor to facilitate quicker clearance of shipments. 
• Under the proposal, approvals and clearances related to customs will be given online on both sides.
• The move is aimed at cutting the cost and time for customs clearance and speed up bilateral trade.
• It will complement the bilateral comprehensive free trade agreement signed between India and the UAE last year, which immediately eliminated duties for 90% of India’s exports in value terms covering sectors like gems and jewellery, textiles, leather, and engineering goods.

What is it ?

• A virtual trade corridor is an online platform that enables faster and more efficient customs clearance for international trade between two countries.
• It will complement the bilateral comprehensive free trade agreement signed between India and the UAE in 2022.
• The agreement immediately eliminated duties for 90% of India’s exports in value terms covering sectors like gems and jewellery, textiles, leather, and engineering goods.
• The two countries estimate non-oil trade to reach $100 billion over the five-year period after the implementation of the free trade agreement.
• It will cut the cost and time for customs clearance and speed up bilateral trade.

Practice Questions for Prelims

Consider the following statements:
1. A virtual trade corridor is an online platform that enables faster and more efficient customs clearance for international trade between two countries.
2. The agreement immediately eliminated duties for 100% of India’s exports in value terms.

Which of the above given statements is/are incorrect?
a) 1 only
b) 2 only
c) Both 1 and 2
d) Neither 1 nor 2

Ans. b)

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