Oil-rich United Arab Emirates has identified key sectors including railways, housing, ports, roads and renewable energy (mainly solar) for investments in India as part of the $ 75 bn announced during Prime Minister’s August trip to the Gulf nation that marked a paradigm shift in bilateral strategic and economic partnership.
UAE had announced to investment a huge $ 75 bn for various sectors in India when Narendra Modi made a two-day trip to Abu Dabhi and Dubai last August — first by an Indian PM to the Gulf Nation in three decades. Earlier this month Finance Minister Arun Jaitley was in UAE to discuss this investment proposal among other issues and met senior officials of the Abu Dabhi Investment Authority (ADIA), one of the largest sovereign funds in the Gulf nation, officials from Adu Dabhi said.
ADIA would contribute to the $ 75 bn fund allotted for investments in India in sectors including railways, roads, housing, ports and renewable energy (solar initiatives) where the Modi government is seeking FDI to boost economy, officials from the Gulf State indicated. The Indian PM is likely to announce a Solar Mission at the Paris Climate change summit.
However, UAE is pushing to begin the process of investments in near future by various Ministries in keeping with Modi’s promise. “India is now a strategic partner for UAE and Abu Dabhi wants to invest in India’s growth and seeking expedition of the process on the ground,” a person familiar with the developments told ET.
With this goal in mind Jaitley met Sheikh Hamdan Bin Rashid Al Makhtoum, Minister of Finance UAE to discuss issues of mutual cooperation in field of economic and trade development during his trip there. His visit follows that of UAE’s Foreign Minister to India within weeks of Modi’s trip to Abu Dabhi and this shows the seriousness of both nations which have now expanded their counter-terror cooperation amid growing threat from IS and other terror groups in South Asia. Strengthening counter-terror cooperation also figured during Jaitley’s deliberations with UAE leadership.
The Finance Minister also invited large participation and investment in recently constituted National Investment and Infrastructure Fund (NIIF) by the Sovereign Wealth Funds and Pensions Funds of the UAE. He said that the investment in NIIF will ensure good returns on investment as the Government will invest these funds in infrastructure projects.
Jaitley also raised the issue of fresh negotiations among officials of India and UAE for finalizing the terms of reference of the new Bilateral Investment Promotion Agreement (BIPA) as the existing BIPA is expiring by this December. New BIPA will come in existence from next January.