India-UAE Strengthen Economic Ties at 12th Meeting of High-Level Joint Task Force on Investments

Mumbai: The 12th meeting of the India-UAE High-Level Joint Task Force on Investments (HLJTFI) took place in Mumbai today, co-chaired by Piyush Goyal, India’s Minister of Commerce and Industry, and His Highness Sheikh Hamed bin Zayed Al Nahyan, Managing Director of the Abu Dhabi Investment Authority (ADIA). The task force, established in 2013, continues to serve as a vital forum to promote trade, investment, and economic ties between the two nations.

During the meeting, both sides acknowledged the continued growth of the India-UAE partnership, highlighted by key developments such as the ratification of the India-UAE Bilateral Investment Treaty in August 2024. The Comprehensive Economic Partnership Agreement (CEPA), signed in 2022, has already boosted bilateral trade, with non-oil trade between the two countries reaching $28.2 billion in the first half of 2024, marking a 9.8% year-on-year increase.

Piyush Goyal emphasized the strength of the partnership, stating, “India-UAE ties are built on innovation, investment, and sustainable development. Our meeting today reaffirmed the importance of initiatives like local currency settlement and the Bharat Mart, which are shaping the future of our collaboration.”

The CEPA has reduced tariffs across key product lines and addressed barriers to trade, facilitating increased foreign direct investment (FDI). The UAE is now India’s fourth-largest foreign investor, with commitments of $3.35 billion in 2023, a threefold increase over the previous year. Indian FDI into the UAE also surged to $2.05 billion in 2023, surpassing combined totals from 2021 and 2022.

The meeting reviewed ongoing investments by UAE entities in sectors such as energy, artificial intelligence, and agriculture, totaling approximately $100 billion. Both sides discussed projects like food corridors and food parks, which are expected to boost food security for the UAE while creating jobs and increasing incomes for Indian farmers.

His Highness Sheikh Hamed bin Zayed Al Nahyan remarked, “The India-UAE CEPA has been a major catalyst in strengthening economic ties. This task force is key in removing obstacles and exploring new opportunities for cooperation.”

The UAE’s involvement in India’s infrastructure assets and initiatives such as the Virtual Trade Corridor and the development of a food park in Ahmedabad were also reviewed. Small working groups are being formed to accelerate the creation of food corridors on a mission-mode basis, signaling a high level of commitment to the leaders’ shared visions.

An important announcement was made regarding the collaboration between the National Payments Corporation of India (NPCI) and Al Etihad Payments (AEP) to develop the JAYWAN card scheme in the UAE. This initiative, based on India’s RuPay card system, will enhance digital payment sovereignty for the UAE. The two governments are also working on linking the UPI (India) and AANI (UAE) payment platforms, facilitating seamless cross-border transactions and real-time remittances for over 3 million Indian expatriates residing in the UAE.

Further, the Abu Dhabi Investment Authority (ADIA) is set to establish a subsidiary in GIFT City, India’s financial hub, demonstrating the growing interest of UAE institutional investors in India’s dynamic economy.