UAE signals $25 billion investment in India; eyes ports, energy, and space sectors
India and the UAE have set a target of doubling bilateral trade to $200 billion by 2032, following a recent agreement to deepen cooperation across various sectors.
UAE's $25 billion investment plan
Union Commerce and Industry Minister Piyush Goyal announced on Monday that the UAE has indicated its intent to invest an additional $25 billion in India in the near future. This investment is in addition to the $25 billion already invested by the UAE in India.
The UAE's investment plan focuses on several key sectors, including ports, shipbuilding, energy security, space technology, and financial services. Mr. Goyal stated that the UAE believes in India and is one of the largest foreign direct investment sources of capital for the country.
Cooperation in maritime sector
One of the major outcomes of the recent discussions between India and the UAE was an agreement to establish a bilateral working group covering six areas of maritime cooperation. These areas include ship ownership, development of modern ports, ship manufacturing, repair and maintenance, ship breaking, and container manufacturing.
Mr. Goyal stated that the UAE is looking to invest in India's ports and shipbuilding sectors, with a focus on developing modern ports and increasing India's port capacity. He also mentioned that the UAE investors could participate in new ports as well as the expansion of existing facilities.
Energy security and cooperation
Energy security was another major area discussed by the two sides. Mr. Goyal stated that India is working with the UAE on expanding strategic petroleum reserves in the country, with studies currently underway.
He also mentioned that India is exploring increased supplies of LNG and other gases from the UAE, as well as the feasibility of subsea pipelines that could transport gas to India.
Cooperation in space technology and fintech
India and the UAE are also exploring greater investment and cooperation in space technology, including startups working on technologies related to orbital debris. In fintech, discussions included using India's digital payments capabilities alongside artificial intelligence and cybersecurity to expand financial services cooperation.
Mr. Goyal also mentioned that greater cooperation in food processing, packaging, quality control, and branding could help Indian farmers and MSMEs increase exports of food and marine products to the Gulf and other international markets.
India's export performance
Mr. Goyal highlighted India's expanding network of free-trade agreements, saying that agreements with developed economies were intended to provide Indian farmers, fishermen, MSMEs, and manufacturers preferential access to larger overseas markets.
He also mentioned that India recorded exports of goods and services worth around $863 billion last year and has set a target of reaching $1 trillion this year.
Overall, the discussions between India and the UAE reflect the expanding economic relationship between the two countries, with a focus on cooperation in various sectors, including ports, energy, space, and fintech.
