New Delhi: In what will be a huge boost to India’s non-oil trade in West Asia, Prime Minister Narendra Modi and Ruler of Dubai and Vice President and Prime Minister of the United Arab Emirates (UAE) Sheikh Mohamed bin Rashid Al Maktoum laid the foundation stone for a Bharat Mart in Dubai on Wednesday.
"Prime Minister Shri Narendra Modi and His Highness Sheikh Mohamed bin Rashid Al Maktoum, Vice President, Prime Minister, and the Ruler of Dubai, virtually laid the foundation stone of Bharat Mart at Jebel Ali Free Trade Zone in Dubai to be built by DP World, on 14 February 2024,” the Prime Minister’s Office said in a statement.
"The two leaders expressed confidence that Bharat Mart will propel India-UAE bilateral trade further by leveraging Jebel Ali Port’s strategic location and strength in logistics. Prime Minister said that Bharat Mart has the potential to play an important role in promoting exports of the micro, small and medium sectors of India by providing them with an effective platform to reach out to international buyers in the Gulf, West Asia, Africa, and Eurasia.”
The mega mart, which is set to open in 2025, will allow Indian exporters to showcase their products under one roof. Spanning over 100,000 sq m, Bharat Mart will serve as a versatile facility, encompassing warehouse, retail, and hospitality units. The intention is to establish a strategic hub for trade operations from the UAE. This project holds significance, aligning with the ambitious goal of India and the UAE to double their non-petroleum trade to $100 billion by 2030 under the Comprehensive Economic Partnership Agreement (CEPA), initiated in 2022. The CEPA is also expected to increase the total value of trade in services to over $15 billion within five years. The agreement covers almost all the tariff lines dealt in by India (11,908 tariff lines) and the UAE (7581 tariff lines) respectively.
What is of significance is the location of the mart itself. The Jebel Ali Free Zone (JAFZA) is a renowned and one of the largest free economic zones located in Jebel Ali, Dubai. Established in 1985, JAFZA has played a pivotal role in the economic development of the region. It provides a business-friendly environment by offering various incentives and benefits to companies, such as tax exemptions, 100 percent foreign ownership, and no import or export duties.
JAFZA serves as a hub for international businesses, attracting a diverse range of industries including manufacturing, logistics, trading, and services. The free zone’s strategic location, adjacent to the Jebel Ali Port, contributes to its attractiveness as a major logistics and distribution center. It has become a key player in promoting foreign investment and fostering economic growth in Dubai and the broader UAE.
“Bharat Mart is poised to become a mega-distribution hub to support the exports of made-in-India products to the world,” Abdulla Al Hashmi, chief operating officer, Parks and Zones, of DP World GCC, was quoted as saying in December last year. “It will benefit Indian companies planning to expand their operations into Africa, Europe and the US.”
According to Al Hasmi, this will help reduce the time and cost of shipping goods between India and these countries. Retail showrooms, warehouses, offices and ancillary facilities will be part of Bharat Mart which is being designed to accommodate various categories of goods, from perishable items to heavy machinery.
Once opened, Bharat Mart is expected to rival China’s Dragon Mart in Dubai. The Dragon Mart is the largest Chinese retail trading hub outside mainland China. It includes the largest concentration of Chinese businesses in the UAE.
There are two Dragon Mart malls in separate buildings next to each other in Dubai. The original Dragon Mart 1 shops are organised in various sections for each type of market, such as furniture, textiles, household items, lighting equipment, sports and garments, etc. The newer Dragon Mart 2 is more like a traditional shopping mall with four sections covering general merchandise, building materials, home appliances, and hardware and machinery.
The original Dragon Mart 1 covers an area of 240,000 sq m with parking facilities for 2,000 cars. Dragon Mart 2, adjacent to the original Dragon Mart mall, covers 175,000 sq m of space and with 4,500 parking spaces.
Though China has a two-decade headstart with the first Dragon Mart having been opened in 2004, what will be of advantage for Bharat Mart will be its strategic location in JAFZA. Dragon Marts 1 and 2 are located in Dubai International City, a suburb of Dubai on the highway to Oman.
Bharat Mart represents a visionary initiative set to revolutionise the landscape for Indian exporters in the UAE market. Boasting extensive facilities, a cutting-edge digital platform, and a strategic positioning, it is primed to emerge as a dynamic epicentre for trade and commerce.
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