Abu Dhabi Investment Authority establishes subsidiary GIFT City: Piyush Goyal
The India-UAE High Level Joint Task Force on Investments (HLJTFI) convened for its 12th meeting in Mumbai on Monday, 7 October. Sheikh Hamed bin Zayed Al Nahyan. During the meeting, the co-chairmen acknowledged the continued growth and strengthening of bilateral relations between India and the UAE, covering a wide range of issues including those related to trade and investment. The India-UAE Bilateral Investment Agreement, which was signed during Prime Minister Narendra Modi’s visit to the UAE in February 2024, was ratified by both sides and came into force from August 31, 2024, according to an official statement.
Goyal said the government will open an Invest India office in Dubai, UAE, which will act as a contact point for potential UAE investors who want to invest in India.
The Union Minister of India also said that the Abu Dhabi Investment Authority (ADIA) will establish a subsidiary of GIFT City in Gujarat. “This underscores the strong interest from UAE institutional investors in India’s growing and dynamic economy, and GIFT City’s reputation as a world-class financial services center, operating under a strong regulatory and legal framework,” the statement said.
“The India-UAE partnership stands on the pillars of innovation, investment and sustainable development. The Joint Task Force meeting today was useful in looking at all the laudable initiatives undertaken by India and the UAE jointly, such as local currency, virtual trade corridor, Bharat Mart, and so on,” said the Commerce and Industry Minister.
“With the strong framework now provided by the India-UAE CEPA and the Bilateral Investment Agreement, I encourage stakeholders to continue exploring investment opportunities and trade opportunities,” added Goyal.
He also acknowledged food parks among the important areas of major cooperation and investment between India and the UAE.
Established in 2013 to promote trade, investment, and economic relations between India and the UAE, HLJTFI has provided an effective medium to discuss opportunities and prospects for further investment in India and the UAE. It also serves as a forum to resolve issues faced by investors of both countries.
The co-chairs identified several areas in the meeting, including the rapid increase in bilateral trade under the Comprehensive Economic Partnership Agreement (CEPA), which came into effect in May 2022.
The Joint Task Force also reviewed the functioning of the India-UAE CEPA, which was one of the fastest-negotiated Free Trade Agreements.
This landmark agreement is designed to promote increased trade and improve trade relations between the two countries, the Department of Commerce said.
Over the past two years, CEPA has helped lower tariffs on many product lines, sought to address other trade barriers, and created new forms of cooperation.
Thanks to this agreement, bilateral trade has grown steadily, with non-oil trade rising to $28.2 billion in the first half of 2024, an annual increase of 9.8 percent, the Ministry said.
It also highlighted that the agreement stimulated FDI on both sides, representing “real growth with a real, real-world impact”. The deal has also led to job creation in India and rapid growth in exports from labour-intensive sectors, it said.
Considering the strategic agreements and plans signed during the official visit of the Prince of Abu Dhabi Sheikh Khalid bin Mohamed Al Nahyan to India, the two sides noted the existing and future investments and projects of the UAE organizations in the key sectors of the Indian economy, including energy, made. intelligence, transportation, and food and agriculture, which is estimated at $100 billion.
The meeting also reviewed the UAE’s investment in India’s infrastructure assets.
In Monday’s meeting, the two sides reviewed progress on several key initiatives, several of which were previously announced by Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan. Both parties also expressed satisfaction with the rapid pace of implementation.
