Important for India to have structural reforms: UAE

As India eyes investment from United Arab Emirates, the Gulf nation has sought more structural reforms and an attractive climate for absorbing foreign direct investment.
With the two countries targeting trade of over USD 100 billion by 2020, Anwar Gargash, the UAE's Minister of State for Foreign Affairs, said it was essential to add "new revenue streams" and explore other fields to achieve that goal.
He said the 'Security Dialogue' between the two countries is "moving ahead" as both face a threat from extremism and terrorism.
"It is important to have structural reforms in India. If you look at the FDI in India, it is not very large in comparison to the size of the Indian economy and its potential.

"So, what we would like to see also is a more attractive climate in terms of absorbing the investment," Gargash said here at an interaction with reporters along with Reem Al Hashimi, UAE's Minister of State for International Development. The two are a part of the UAE delegation led by Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan.
Gargash said neither country was doing any "favour" to the other as India was looking for investments and the UAE for markets for its sovereign funds.

"A lot of foreign investment comes through World Bank, but we work more as sovereign funds and more on commercial basis. This is one area where we are working with the Indian government. We are also waiting for the Indian party to find the right channel for us to make that commitment.

"As much India is seeking our funds, we are also seeking India's market. It's a win-win situation," he said.
UAE invests around USD 10 billion in India of which around USD 3.3 billion is FDI while the remaining is portfolio investment.
Seeking to explore new avenues to raise the trade between
the two countries to USD 100 billion, Gargash said the target is "doable", but areas like IT, solar energy and sustainable energy must be looked at.
"The target could be reached if both worked together. You cannot keep squeezing the same orange. You have to create new areas of cooperation. If we look at IT, solar or sustainable energy, this is something (to focus on)... You need to add new revenue streams. It's doable," he said.

Talks are on for the trade pact between Gulf Cooperation Council (GCC) and India and the UAE has been talking to its Arab partners about it, he said.
"India is thinking strategically. We want to shift gears in the relationship with India," he said, referring to Modi's visit to Abu Dhabi. It was an opportunity which was "grabbed" by the UAE, he added.
Noting that the issue of terrorism and extremism was of major concern to both nations, Gargash said the UAE has "zero tolerance" to these and the fight against terrorism is a "marathon and not a sprint".
About Syria, he said that apart from air attacks, the campaign also needs the presence of ground troops, especially special forces.

"We have not asked India for troops (to join the fight against ISIS)," he said, adding that the UAE was aware of India's security priorities which revolve around the Indian Ocean and the sub-continent.
"The talks on defence cooperation are on and discussion is moving very well. A lot of things are in the pipeline. If we are able to achieve 30, 40 or even 50 per cent of what was discussed during Prime Minister Modi's visit to Abu Dhabi, it will be a lot," Gargash said.
He added that Crown Prince Mohammed bin Zayed Al Nahyan will visit Mumbai tomorrow as it is not only the financial capital of India, but also a "major trade window" for Abu Dhabi.