India-UAE High Level Joint Task Force On Investments Holds Its 12th Meeting In Mumbai
The 12th India-UAE High Level Joint Task Force on Investments (HLJTFI) convened in Mumbai. It was co-chaired by Shri Piyush Goyal, India's Commerce and Industry Minister, and H.H. Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA). Established in 2013, the HLJTFI aims to enhance trade and economic ties between India and the UAE.
During this meeting, both sides acknowledged the strengthening bilateral relationship. They highlighted progress in trade and investment matters. The India-UAE Bilateral Investment Treaty, signed during Prime Minister Modi’s visit to the UAE in February 2024, has been ratified by both nations. It took effect on 31st August 2024.
The Comprehensive Economic Partnership Agreement (CEPA), effective from May 2022, has significantly boosted bilateral trade. This agreement reduced tariffs on most products and addressed other trade barriers. As a result, non-oil trade reached US$28.2 billion in the first half of 2024, marking a 9.8% increase compared to the previous year.
Foreign Direct Investment (FDI) has also seen a rise due to CEPA. By 2023, the UAE became India's fourth-largest foreign investor with US$3.35 billion committed across various sectors. This represents a threefold increase from 2022 figures.
Indian FDI into the UAE totalled US$2.05 billion in 2023, surpassing combined totals for 2021 and 2022. These investments reflect tangible growth with significant impacts on both economies. The meeting reviewed UAE investments in Indian infrastructure assets as well.
The recent visit of H.H. Sheikh Khalid bin Mohamed Al Nahyan to India led to strategic agreements worth approximately US$100 billion in key sectors like energy, AI, logistics, food, and agriculture.
Progress on Key Initiatives
The HLJTFI meeting assessed progress on several initiatives announced by Indian Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan. These include local currency trade, payment system integration, cooperation on Central Bank Digital Currencies, a Virtual Trade Corridor launch, and a food park development in Ahmedabad.
The establishment of an ADIA subsidiary at GIFT City was welcomed as it underscores UAE investors' interest in India's economy. GIFT City is recognised for its robust legal framework and world-class financial services.
Investment Opportunities Discussed
The HLJTFI serves as a platform for discussing ways to boost investment flows between both countries. India shared opportunities in renewable energy, green hydrogen, pharmaceuticals, and genomics sectors. The UAE highlighted investment prospects in India's aerospace sector due to its growing aviation market.
Both sides discussed challenges faced by companies from each country with an aim to resolve them efficiently. They directed their teams to collaborate with relevant government entities for timely solutions.
Commitment to Shared Goals
The meeting was attended by senior officials including Shri Amardeep Singh Bhatia from India's Department for Promotion of Industry and Internal Trade; Shri Sunjay Sudhir, Indian Ambassador to the UAE; Dr Abdulnasser Jamal Alshaali; Ambassador of the UAE to India; among others.
Shri Piyush Goyal stated: "India-UAE partnership stands on pillars of innovation, investment and sustainable development." He encouraged stakeholders to explore further opportunities under CEPA's framework.
H.H Sheikh Hamed bin Zayed Al Nahyan remarked: "The India-UAE CEPA has been a major catalyst for strengthening economic ties." He emphasised that the Joint Task Force plays an important role in exploring new opportunities while removing cooperation impediments.
With inputs from WAM
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