UAE to raise investment in India to Rs 5 lakh crore

India-UAE trade, valued at $180 million per annum in the 1970s, is today around $60 billion

To bolster economic ties, the UAE on Monday agreed to increase its investment in India to $75 billion (about Rs 5 lakh crore). The two nations also agreed to increase trade between them 60 per cent through the next five years and sign a strategic partnership in the energy sector.

Prime Minister Narendra Modi and Crown Prince Mohammed Bin Zayed Al Nahyan of Abu Dhabi also agreed to facilitate participation of Indian companies in infrastructure development in the UAE.

A joint statement issued after a meeting between the two leaders said they resolved to “further promote trade between the two countries and use their respective locations and infrastructure for expanding trade in the region and beyond”.
 

To step up UAE’s investment in India, a UAE-India Infrastructure Investment Fund would be set up. This would “support investment in India’s plans for rapid expansion of next-generation infrastructure, especially in railways, ports, roads, airports and industrial corridors and parks”, the joint statement said.

It added Modi and the crown prince of Abu Dhabi had agreed to “promote strategic partnership in the energy sector, including through UAE’s participation in India in the development of strategic petroleum reserves, upstream and downstream petroleum sectors, and collaboration in third countries”.

Cooperation in the areas of education and higher research would also be stepped up, the statement said.

Earlier in the day, Modi addressed business leaders from the UAE and said India offered investment potential of $1 trillion. Besides, the UAE could tap “India’s expertise in small and medium enterprises to create a vibrant industrial base in the UAE, which could also be of benefit to Indian enterprises.” Investment opportunities in India, especially in infrastructure, energy and real estate, were immense, Modi said.

“On the one hand, India is growing fast and on the other, the world is looking at Asia. But is Asia complete without the UAE?” he asked. “I can clearly see the UAE should be at the centre of things in Asia. UAE’s power and India’s potential can make it Asia’s century.”