External Affairs Minister Sushma Swaraj on Tuesday invited the United Arab Emirates to participate in the 'Smart Cities' project, which aims to rejuvenate Indian cities as urban centres, adding that the policies of the government are transparent and stable.
"Foreign investment caps in construction are being eased to enable greater participation in the government's 100 'Smart Cities' project and affordable housing. The Foreign Direct Investment (FDI) caps in Railways and Defence production have already been eased to 100 percent and 49 percent, respectively. The objective is also to ensure solid growth and employment creation. Small and Medium sectors would also be central to the plan of absorbing job aspirants and reviving the manufacturing sector," Swaraj said, while interacting with captains of industry of the UAE here.
Discussing the plans regarding the project, Swaraj said that India requires financing for its infrastructure, adding that the emphasis is on the creation of 'Smart Cities' and industrial clusters.
"Our infrastructure financing needs are estimated to be USD one trillion (one lakh crore) in the next five years. We have ambitious targets and have put in place mechanisms to overcome implementation bottlenecks. Our policies are transparent, stable and designed to provide a level-playing field to both domestic and foreign investors," she said.
"In terms of infrastructure, we are putting emphasis on creation of new Smart Cities and Industrial Clusters. Existing Industrial Corridors are being reinforced and new ones setup. World-class horizontal and vertical infrastructures are being created along these corridors which we expect will act as a magnate for investment," Swaraj added.
Swaraj also assured the assembled that investments into India would not only be safe but would also provide good returns
"UAE is also one of the countries with which we have a Double Taxation Avoidance Agreement (DTAA) having certain preferential features conducive for increased investment in India. Bilateral Investment Promotion and Protection Agreement (BIPPA) and DTAA, thus, provide the necessary framework under which investments from UAE into India would not only be safe but would also provide good returns," she said.
India and the UAE enjoy strong bonds of friendship based on age-old cultural, religious and economic ties between the two nations. Economic and commercial cooperation with the UAE is a key aspect of overall bilateral relationship, with Indians emerging as important investors within the UAE and India as an important export destination for goods manufactured in the UAE.
