UAE Increases Investment Commitment in India to $100 Billion

The United Arab Emirates (UAE) is set to elevate its investment pledge in India from $75 billion to an impressive $100 billion, underscoring its commitment to enhancing economic ties between the two nations. Currently, the UAE ranks as the seventh-largest foreign direct investor (FDI) in India, contributing approximately $19 billion from April 2000 to June 2024, accounting for 3% of India’s total FDI.

During the 12th meeting of the India-UAE High Level Task Force on Investments, Commerce and Industry Minister Piyush Goyal announced discussions focusing on establishing food parks in India specifically designed for the UAE market. This initiative, dubbed the “Food Corridor,” is projected to involve an initial investment of $2 billion to set up food processing units that cater to the tastes of the UAE populace, along with the necessary logistics for transporting these products.

Minister Goyal highlighted the accelerated progress of discussions surrounding the food sector investments, noting that the groundwork for these projects is nearly complete. “We have agreed to establish a working group involving central and state governments, along with UAE counterparts, to advance the food corridor initiative on a mission mode basis,” he stated.

The UAE’s investment approach comprises direct contributions, estimated at around $20 billion, as well as co-investments through various global funds, including major investment houses like Blackstone and KKR, which channel UAE sovereign wealth into Indian ventures.

The Abu Dhabi Investment Authority (ADIA), the UAE’s largest sovereign wealth fund with over $950 billion in assets, has also commenced operations in India, having recently opened an office in GIFT City. This move is expected to further boost ADIA’s investment activities within the country.

In a reciprocal gesture, India plans to establish a trade and investment promotion office in the UAE. This initiative will be a collaborative effort involving Invest India, the Export Credit Guarantee Corporation (ECGC), the Directorate General of Foreign Trade (DGFT), and the National Industrial Corridor Development Corporation (NICDC), which is currently developing 20 smart industrial cities across India.

This enhanced collaboration between the UAE and India signifies a promising future for economic growth and investment opportunities in both countries.