UAE’s Investment in India Set to Reach $100 Billion: Piyush Goyal

Introduction

India’s economic ties with the United Arab Emirates (UAE) are set for a significant boost, with UAE investments in India projected to reach $100 billion across key sectors, according to Union Commerce and Industry Minister Piyush Goyal. This announcement was made during the 12th meeting of the India-UAE High-Level Task Force on Investments, co-chaired by Goyal and Sheikh Hamed bin Zayed Al Nahyan, managing director of the Abu Dhabi Investment Authority.

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Expanding Investment Beyond $75 Billion Commitment

Initially, in 2018, the UAE had committed $75 billion for investments in India, focusing on infrastructure, manufacturing, and other sectors. This planned investment is now poised to grow to $100 billion, reflecting the UAE’s increasing interest in India’s economic landscape, although no specific timeline was provided.

Strengthening Bilateral Trade

India-UAE trade reached $85 billion in 2022-23, making the UAE India’s third-largest trading partner after China and the U.S. Additionally, the UAE ranks as India’s second-largest export market, with exports worth $31.61 billion. Despite a $12 billion trade deficit with the UAE, this gap has narrowed from $21 billion the previous year, suggesting an improving trade balance.

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Food Corridor and Future Investments

A key highlight from the meeting was the announcement of a $2 billion investment in a food corridor over the next 2-2.5 years, aimed at boosting income for Indian farmers and creating jobs. This initiative will establish food processing parks, enhancing food production and ensuring high-quality exports to the UAE.

Educational Collaboration: IIFT Campus in Dubai

India is also expanding educational cooperation, with the Indian Institute of Foreign Trade (IIFT) set to open its first overseas campus at Dubai’s Expo City by early 2025. The campus will offer training programs and eventually launch its flagship MBA in International Business.

Conclusion

With the UAE’s investments in India set to reach $100 billion, the economic partnership between the two nations continues to strengthen. This increased investment, spanning sectors like infrastructure, food processing, and education, marks a critical milestone in India-UAE relations, driving mutual growth and regional stability.

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