Will UAE Increase Its Investments in India?

New Delhi, Sep 19 (NationPress) The Minister of Commerce and Industry, Piyush Goyal, expressed optimism on Friday regarding a surge in investment from the affluent United Arab Emirates (UAE) into India, anticipating significant increases in both Foreign Direct Investment (FDI) in business initiatives and Foreign Institutional Investment (FII) in capital markets.

“I believe we can expect greater investment inflows from the UAE. Considering the current state of the Indian economy, we are looking at much larger capital pools entering India, both in the form of FDI and FII,” stated Goyal, who is currently on a two-day visit to the UAE, during which he co-chaired the 13th India-UAE High Level Task Force on Investments alongside Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA). The discussions included reviews of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), the Double Taxation Treaty, and matters concerning the central banks of both nations.

He emphasized that the UAE has evolved into a pivotal hub for activities spanning Africa, the Middle East, and Central Europe.

“India aims to capitalize on the investment hub that the UAE has successfully established,” remarked the Minister.

Goyal pointed out the synergy between the UAE's substantial capital reserves and India’s skilled workforce, which fosters a mutually beneficial relationship between the two nations.

“There are numerous third-country demands where large capital can be deployed. This can be a win-win situation for the third nation, the UAE as the capital provider, and India as the talent source. We are encouraging the private sectors of both countries to collaborate in this regard,” he added.

“Businesses from both nations have leveraged the FTA between India and the UAE, enabling us to elevate our ambitions and target a non-oil and non-precious metal bilateral trade of $100 billion within the next 3 to 4 years,” he continued.

On Friday, Goyal conducted several meetings aimed at enhancing bilateral trade, strengthening investment connections, and exploring new cooperation avenues to improve relations, according to a statement from the Commerce Ministry.

He engaged with CEOs from notable Indian and UAE enterprises during the UAE–India Business Council (UIBC) Roundtable, which he co-chaired with Dr Thani bin Ahmed Al Zeyoudi, the UAE's Minister of Foreign Trade.

Both officials expressed satisfaction regarding the continually expanding economic partnership between India and the UAE, acknowledging the vital role of the business community in advancing their bilateral relationship.

Discussions revolved around enhancing bilateral trade and investment flows, strengthening business collaborations, and pinpointing new economic cooperation areas.

Key projects such as Bharat Mart and the India UAE Friendship Hospital were also on the agenda, with their roles in promoting bilateral trade and investments, as well as their effects on the broader Indian community in the UAE, being outlined.

The two ministers noted the increasing involvement of business leaders in philanthropic initiatives and remarked on the constructive influence of these efforts on the wider community. They encouraged businesses to explore opportunities not only in India and the UAE but also to expand their ambitions to other regions, including Africa, Europe, and Central Asia.

An interaction session led by Nilesh Ved, Chairman of the Apparel Group, was organized for Goyal to engage with prominent UAE business leaders. Discussions focused on broadening investment outreach and showcasing India’s potential to support UAE companies' regional and global aspirations. The Minister highlighted the recent advancements made by the Indian economy, particularly in terms of macroeconomic growth, infrastructure development, and social inclusion, emphasizing India's trajectory towards ‘Viksit Bharat’. He invited UAE businesses to capitalize on emerging growth opportunities in India, as noted in the statement.

During these discussions, UAE investors provided constructive feedback on improving the investment climate, addressing issues such as market access, regulatory frameworks, and dispute resolution.

Topics like arbitration frameworks and the predictability of enforcement were also discussed with a forward-looking perspective. The Minister reiterated India's commitment to fostering a transparent and supportive business environment, underscoring the government’s ongoing reform efforts to bolster investor confidence and the nation’s recent economic achievements.

Goyal also held focused dialogues with Hana Al Rostamani, CEO of First Abu Dhabi Bank, Irfan Allana of IFFCO Group, and Sharafuddin Sharaf from Sharaf Group. These discussions centered around growth strategies for enhancing the companies’ presence in India and deepening economic partnerships between businesses in both countries, as stated.

He also interacted with members of the India People’s Forum, reflecting ongoing engagement with the Indian diaspora and its crucial role in fortifying the cultural and economic ties between India and the UAE. He acknowledged the significant contributions of the Indian diaspora in the UAE and its impact on strengthening economic collaboration between the two nations.