(MENAFN- KNN India)
New Delhi, Oct 8 (KNN)
In a significant development for India-UAE economic relations, the United Arab Emirates' investment commitment to India is poised to exceed USD 100 billion, surpassing the previously announced target of USD 75 billion.
This revelation came from India's Commerce and industry Minister Piyush Goyal following the 12th meeting of the India-UAE High Level Task Force on Investments.
The discussions between the two nations centred on establishing food parks in India exclusively catering to UAE markets. Minister Goyal disclosed that the UAE has made an initial commitment of USD 2 billion towards this 'Food Corridor' initiative.
The investment will be directed towards setting up food processing units tailored to UAE preferences and developing the necessary logistics infrastructure. These projects are expected to materialise over the next two to two-and-a-half years.
To expedite the food corridor's establishment, both countries have agreed to form a working group comprising representatives from India's central government, involved state governments, and the UAE.
This group will operate on a mission mode basis to ensure swift progress.
The UAE currently ranks as the seventh-largest source of Foreign Direct Investment (FDI) in India, accounting for 3 per cent of the total FDI received.
Cumulative investment from the UAE reached approximately USD 19 billion between April 2000 and June 2024. Minister Goyal noted that UAE investments flow into India through direct channels and co-investments via global funds.
In a move that signals deepening economic ties, the Abu Dhabi Investment Authority (ADIA), the UAE's largest sovereign wealth fund with assets exceeding USD 950 billion, has commenced operations in India.
After securing necessary approvals, ADIA has established an office in GIFT City, which is expected to accelerate its investment activities in the country.
Reciprocating these initiatives, India announced plans to open a trade and investment promotion office in the UAE.
This office will be a collaborative effort involving Invest India, Export Credit Guarantee Corporation (ECGC), Directorate General of Foreign Trade (DGFT), and the National Industrial Corridor Development Corporation (NICDC), which is currently developing 20 smart industrial cities across India.
These developments underscore the strengthening economic partnership between India and the UAE, with both nations taking concrete steps to enhance bilateral investments and trade relations.
(KNN Bureau)
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