Countries advance talks on infrastructure, food parks, and trade, deepening economic ties
The UAE’s investment commitment in India is poised to exceed $100 billion, surpassing the previously set target of $75 billion. This announcement was made following the 12th meeting of the India-UAE High Level Task Force on Investments held on Monday, where discussions explored key opportunities for collaboration in sectors such as infrastructure, manufacturing, public markets, and food parks.
India’s Commerce and Industry Minister, Piyush Goyal, revealed that both countries are actively working on establishing food parks in India that will cater specifically to UAE markets. This investment is expected to strengthen the food supply chain and bolster bilateral trade. “The UAE has made an initial commitment of $2 billion for the development of these food processing units,” Goyal stated, highlighting that these investments will take shape over the next two to two-and-a-half years.
Currently, the UAE has $20 billion invested directly in India, with significant additional contributions from sovereign wealth funds. The UAE ranks as India’s seventh-largest investor, accounting for 3% of the total foreign direct investment (FDI) India has received between April 2000 and June 2024.
The High-Level Task Force meeting, co-chaired by Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (Adia), and Minister Goyal, also focused on the progress of the India-UAE Comprehensive Economic Partnership Agreement (Cepa). Key initiatives such as the development of a virtual trade corridor and a dedicated food corridor were central to these discussions.
Goyal noted a significant improvement in India’s trade deficit with the UAE, which has dropped from $22 billion to $12 billion, reflecting growing Indian exports to the region. He also emphasized the expanding Indian population in the UAE, which has increased from 2.2 million to 3.5 million over the past decade.
To strengthen bilateral trade cooperation further, Invest India is set to open an office in the UAE. This office will house the National Industrial Corridor Development Corporation (NICDC) and the Export Credit Guarantee Corporation (ECGC), enabling both nations to capitalize on future investment opportunities. In a reciprocal move, the UAE will establish a similar office in New Delhi.
As India and the UAE continue to deepen their economic and trade relations, the shared focus on infrastructure, trade facilitation, and sector-specific investments underscores the strengthening of a strategic partnership that promises mutual growth and prosperity for both nations.
