The governments of the UAE and India have signed a bilateral investment treaty to bolster trade and foreign investments and opportunities between the two countries.
Under the Infrastructure Development Fund (IDF), the government in New Delhi allocated a further Rs296.10bn ($3.57bn) to stimulate investments in various sectors including dairy processing, meat processing, animal feed plants, breed multiplication farms, agri-waste management, and veterinary vaccine and drug production facilities.
“The bilateral treaty with the UAE is anticipated to boost investor confidence, particularly among major investors, attracting increased foreign investments and opportunities for overseas direct investment (ODI),” the government said in a statement.
The announcement came on Thursday during a Union Cabinet meeting between Indian officials. According to the Indian Government, the new move will help the authorities implement the Atmanirbhar Bharat initiative, which translates to ‘self-reliant India’. The phrase is used by the country’s Prime Minister, Narendra Modi, as part of his campaign and vision for India to strengthen its domestic manufacturing, downscale reliance on imports and boost exports to other countries.
For the UAE, the new bilateral trade agreement comes days after the UN Conference on Trade and Development reported significant growth in the country’s greenfield FDI announcements. According to the UN’s investment arm, newly announced FDI projects rose by 28% in the third quarter of 2023 compared with the same period a year before. Overall, FDI inflows into the UAE reached $22.75bn in 2022.
Similarly, FDI inflows in India have gone up in recent years, with $70.97bn recorded in the 2022–23 fiscal year alone. Total FDI inflows in the country reached $953.14bn between April 2000 and September 2023, with a significant share ($615.73bn) coming in the last nine years (April 2014 to September 2023).
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