Considering the strategic agreements and initiatives signed during the recent official visit of H.H. Sheikh Khalid bin Mohamed Al Nahyan, Crown Prince of Abu Dhabi, to India, the two sides noted the existing and future investments and projects of UAE entities in key sectors of the Indian economy.
The meeting also reviewed UAE investments in Indian infrastructure assets.
The meeting was co-Chaired by Piyush Goyal and His Highness Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority (ADIA). The high level task force was established in 2013 to promote trade, investment and economic ties between India and the UAE.
The India-UAE Bilateral Investment Treaty, signed during Prime Minister Modi’s visit to the UAE in February 2024, has been ratified by both sides and entered into force with effect from 31 August 2024.
Goyal also said India and the UAE will establish a food corridor, which is likely to attract investments of $2 billion. “UAE is keen to invest more in food processing units in India. This will lead to job creation in India and Indian farmers will also see a rise in their income,” said Goyal. “At the same time, the export of those products will ensure food security for the UAE.”
UAE continues to be the largest Arab investor in India, with investments amounting to around $ 3 billion FY 23-24. UAE was the 6th largest FDI source for FY 23-24 & 7th largest overall since 2000.
Goyal also spoke about the rapid rise in bilateral trade under the Comprehensive Economic Partnership Agreement (CEPA), which came into force in May 2022. The Joint Task Force reviewed the working of the India-UAE CEPA, which was one of the fastest-ever negotiated Free Trade Agreements.
As a result of the deal, bilateral trade has risen consistently, with non-oil trade rising to $28.2 billion in the first half of 2024, a 9.8% year-on-year increase. The agreement has also spurred FDI – as of 2023, the UAE is India’s fourth largest foreign investor with $3.35 billion committed across a wide range of sectors, representing a threefold increase on 2022. Indian FDI into the UAE in 2023 totalled $2.05 billion, more than 2021 and 2022 combined.
It has led to job creation in the Indian market and export from labour-oriented sectors is growing rapidly, said Goyal. Investment Treaty, which entered into force on August 31, 2024, will further strengthen two-way investment flows, he added.
The minister further said that the Government of India has decided to open an office of Invest India in Dubai, UAE to serve as a dedicated point of contact for potential UAE investors seeking to invest in India. “This will be the first overseas office of Invest India in the Middle East region and the second such overseas office overall after Singapore,” said Goyal.