The UAE and India have held high-level meetings to discuss bilateral trade, sovereign wealth fund investments, freezones and more issues as they pursue economic ties.
The 11th meeting of the UAE-India High Level Joint Task Force on Investments was held in Abu Dhabi, co-chaired by Sheikh Hamed bin Zayed Al Nahyan, the Managing Director of Abu Dhabi Investment Authority (ADIA), and Piyush Goyal, Minister of Commerce and Industry, Consumer Affairs, Food and Public Distribution, and Textiles, Government of India.
The Joint Task Force was established in 2013 to promote trade, investment and economic ties between India and the UAE.
UAE-India trade
It has provided an effective mechanism for discussion on opportunities and prospects for investments in both countries as well as the resolution of issues faced by investors of the two countries.
During the meeting, the co-chairs reviewed the progress made on the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, which came into force in May 2022.
The landmark agreement was designed to spark a new era of cooperation between the two nations, strengthening the long-standing cultural, political and economic ties.
It has helped reduce tariffs on more than 80 per cent of product lines, eliminate barriers to trade and create new pathways for investment and joint ventures.
In the first 12 months of the CEPA, bilateral non-oil trade reached $50.5bn, representing a growth of 5.8 per cent compared to the corresponding period a year earlier.
The two countries are fast moving towards the target of $100bn in non-oil trade by 2030.
The Joint Task Force delegations discussed the status of negotiations for the India-UAE Bilateral Investment Treaty, underscoring the need to accelerate the bilateral discussions for an early conclusion of a balanced agreement that benefits both countries and their investors.
The two sides also discussed ways and incentives for encouraging further growth in investment flows from the UAE sovereign investment entities into India.
In this context, the Indian side shared opportunities for investments in priority sectors like renewable energy, health, semiconductors and asset monetisation sectors in India.
The Indian side requested to strengthen the mechanism, especially for the facilitation of investments in priority sectors like renewable energy and energy transition.
Both sides agreed to use this channel as a means of developing more competitive and accommodating ecosystems that can enable the private sector to fully pursue expansion opportunities in each other’s markets.
Talks also covered the India-UAE Start-Up Bridge, a joint initiative between the UAE Ministry of Economy and India’s Ministry of Commerce and Industry.
The bridge is expected to act as a one-stop platform that offers training sessions and knowledge-sharing on important topics such as market access, investment funds, venture capital, incubators and the respective business landscape in each country.
Another important agenda topic was the establishment of the Abu Dhabi – India Virtual Trade Corridor, which aims to increase overall trade volumes by developing data exchange systems to facilitate paperless trade between the two countries, improving efficiencies and security.
Both sides agreed to continue coordination and cooperation between the respective counterparties of both countries for the early implementation of this milestone.
The co-chairs also reviewed the progress on key projects including the food security corridor-related investment under the I2U2 Framework into India.
The project will be instrumental in addressing food security challenges, with the aim of bolstering the supply of essential food items and establishing a resilient value chain between the two nations.
The Joint Task Force noted the progress of plans for the Abu Dhabi Investment Authority (ADIA) to establish a presence in Gujarat International Finance Tec-City (GIFT City), a financial-free zone in Gujarat, with the aim of facilitating future investments into India.
The Indian side invited other sovereign wealth funds in the UAE to establish a similar presence in India.
The Joint Task Force witnessed the signing of an MOU between the UAE Ministry of Industry and Advanced Technology and the Ministry of Commerce and Industry of the Republic of India, related to cooperation in the fields of Industry and Advanced Technology.
The MOU will promote cooperation in sectors such as space, healthcare, renewable energy, and artificial intelligence, among others.
The two sides aim to develop cooperation efforts and build an institutional framework to promote and develop bilateral cooperation, bearing in mind the important role industries and advanced technologies play in the diversification and growth of economies.
Another agreement was also signed between Al Etihad Payments, a subsidiary of the Central Bank of the UAE, and the National Payments Corporation of India.
The agreement creates a strategic partnership to develop the UAE’s Domestic Card Scheme (DCS).
The UAE DCS is a key element of the Central Bank of the UAE’s Financial Infrastructure Transformation programme which aims to position the UAE as a global leader in digital financial infrastructure.
The DCS will be the nation’s first unified, secure, and efficient card payment platform, accelerating the UAE’s transition to a digital economy by facilitating the growth of e-commerce, providing consumers with a customised offering, enhancing financial inclusion, and reducing the cost of payments.
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