Monday, October 30, 2023

UAE and India Hold High-Level Talks in Abu Dhabi on Investment and Trade


The 11th meeting of the UAE-India High Level Joint Task Force on Investments was recently held in Abu Dhabi, according to a report by the Emirates News Agency. The task force, established in 2013, aims to enhance trade, investment, and economic ties between the two countries. During the meeting, officials discussed the UAE-India Comprehensive Economic Partnership Agreement, which came into effect in May last year and has already had a positive impact on bilateral trade.

One of the key achievements of the agreement is the reduction of tariffs on more than 80 percent of products. As a result, non-oil trade between the UAE and India increased by 5.8 percent to $50.5 billion in the year following its implementation. This demonstrates the significant potential for further growth in trade and investment between the two nations.

In addition to discussing the economic partnership agreement, the task force also explored plans for a joint investment treaty and strategies to increase capital flows into India from UAE sovereign investment organizations. The Indian delegation highlighted investment opportunities in various sectors, including renewable energy, health, semiconductors, and asset monetization.

The meeting also focused on initiatives aimed at fostering innovation and entrepreneurship. The India-UAE Start-Up Bridge, a platform for knowledge exchange on market access, investment funds, venture capital, and other areas of mutual interest, was discussed. This initiative aims to facilitate collaboration between start-ups from both countries and promote innovation-driven economic growth.

Another significant development is the launch of the Abu Dhabi-India Virtual Trade Corridor. This initiative aims to enhance trade by developing paperless data exchange systems, reducing bureaucracy, and streamlining trade processes. By simplifying trade procedures, this virtual corridor will facilitate faster and more efficient cross-border transactions.

Furthermore, progress was reviewed on the establishment of a financial-free zone in Gujarat by the Abu Dhabi Investment Authority (ADIA). This zone will support future investments in India and provide a favorable environment for businesses to thrive. The ADIA’s plans align with India’s goal of attracting foreign direct investment and promoting economic growth.

During the meeting, the UAE’s Ministry of Industry and Advanced Technology and India’s Ministry of Commerce and Industry signed a memorandum of understanding (MoU) to enhance cooperation in various sectors. The MoU focuses on space, healthcare, renewable energy, and artificial intelligence. This collaboration will facilitate knowledge sharing, technology transfer, and joint research and development initiatives between the two countries.

Additionally, a separate agreement was signed between Al-Etihad Payments and the National Payments Corp. of India to create the UAE’s domestic card scheme. This unified and secure card payment platform aims to accelerate the UAE’s transition to a digital economy. It will provide individuals and businesses with a convenient and secure payment solution, contributing to the growth of e-commerce and digital transactions in the country.

The 11th meeting of the UAE-India High Level Joint Task Force on Investments has reaffirmed the commitment of both countries to strengthen their economic partnership. Through initiatives such as the comprehensive economic partnership agreement, the virtual trade corridor, and collaborations in various sectors, the UAE and India are paving the way for increased trade, investment, and technological cooperation. These efforts will not only benefit the two nations but also contribute to regional economic integration and prosperity.

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