The United Arab Emirates (UAE) is set to invest significantly in India to bolster the development of key industries and enhance bilateral trade. This initiative seeks to strengthen economic ties between the two countries, promoting collaboration in areas such as agriculture and infrastructure.

Recently, the UAE announced plans to invest $2 billion in India over the next 2.5 years to develop food processing facilities that will utilize local agricultural produce for markets across the Middle East.

This announcement followed the 12th meeting of the India-UAE High Level Joint Task Force on Investments, co-chaired by India’s Commerce and Industry Minister Piyush Goyal and Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA).

The discussions centered on the ongoing advancements of the India-UAE Comprehensive Economic Partnership Agreement (CEPA), particularly concerning establishing a virtual trade corridor and a dedicated food corridor.

These initiatives aim to enhance trade and investment relations between the two nations. The UAE plans to boost investments in critical sectors such as infrastructure, artificial intelligence, data centers, and renewable energy in India.

Goyal announced that Invest India is establishing an office in the UAE, which will be facilitated by a location provided free of charge by the UAE government. This office will accommodate the National Industrial Corridor Development Corporation (NICDC) and the Export Credit Guarantee Corporation (ECGC) to enhance bilateral trade collaboration. In a reciprocal gesture, the UAE plans to open a similar office in New Delhi, co-located with Invest India.

Currently, the UAE has invested $20 billion directly in India, with additional funding from sovereign wealth funds. Goyal noted a significant improvement in India’s trade deficit with the UAE, decreasing from $2.64 billion to $1.47 billion, indicating growth in Indian exports to the region. He also mentioned the rising Indian population in the UAE, which has increased from 2.2 million to 3.5 million over the past decade.