11th meeting of India-UAE High Level Joint Task Force on Investment concludes

The 11th meeting of the UAE-India High-level Joint Task Force on Investment ('Joint Task Force') was held on 5 October 2023 in Abu Dhabi.

• The joint task force was co-chaired by Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority (ADIA), and Piyush Goyal, Minister of Commerce and Industry.

Joint Task Force:

• The Joint Task Force was established in the year 2013 to promote trade, investment and economic relations between India and the United Arab Emirates (UAE).
• The Joint Task Force has provided an effective mechanism to discuss investment opportunities and prospects in both the countries as well as address the issues faced by investors from both the countries.
• During the meeting, the Co-Chairs reviewed the progress made on the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the two countries, which came into force in May 2022.
• CEPA has helped reduce tariffs on more than 80 percent of product lines, eliminate barriers to trade, and create new avenues for investment and joint ventures.

India and UAE aim to achieve USD 100 billion non-oil trade by 2030:

• In the first 12 months of CEPA, bilateral non-oil trade reached US$50.5 billion, representing an increase of 5.8 percent compared to the same period a year earlier.
• Both countries are rapidly moving towards the target of US$ 100 billion non-oil trade by 2030.
• The Joint Task Force delegations discussed the status of negotiations for the India-UAE Bilateral Investment Treaty and stressed the need to expedite bilateral discussions for the early conclusion of a balanced agreement that benefits both countries and their investors.

Identification of new areas to increase investment in India:

• Both sides also discussed ways and incentives to promote further increase in investment flows from UAE sovereign investment entities to India.
• In this context, the Indian side shared investment opportunities in priority sectors such as renewable energy, health, semi-conductor and asset monetization sectors in India.

Creation of fast track mechanism to facilitate Indian investment in UAE:

• Progress on the creation of a fast track mechanism to facilitate Indian investment in the UAE was also discussed.
• The Indian side specifically requested strengthening mechanisms to facilitate investments in priority sectors such as renewable energy and energy transition.
• Both sides agreed to use this medium as a means to develop a more competitive and conducive ecosystem that can enable the private sector to fully pursue expansion opportunities in each other's markets.

India-UAE Start-up Bridge:

• The talks also discussed the India-UAE Start-up Bridge, a joint initiative between the Ministry of Economy of the UAE and the Ministry of Commerce and Industry of India.
• This bridge is expected to act as a one-stop platform that provides training sessions and knowledge-sharing on important topics such as market access, investment funds, venture capital, incubators and the respective business landscape in each country.

Abu Dhabi-India Virtual Trade Corridor:

• Another important agenda item was the establishment of the Abu Dhabi-India Virtual Trade Corridor, which aims to increase overall trade volumes by developing data exchange systems to facilitate paperless trade between the two countries, improving efficiency and security. Both sides agreed to continue coordination and cooperation between their respective counterparts of the two countries for its early implementation.

I2U2 Framework:

• Both sides also reviewed the progress of key projects in India including investments related to the Food Security Corridor under the I2U2 framework.
• This project will play an important role in addressing food security challenges with the aim of boosting the supply of essential food items and establishing a resilient value chain between the two countries.

UAE presence to increase in Gujarat International Finance Tech-City (GIFT City):

• The Joint Task Force progressed plans of the Abu Dhabi Investment Authority (ADIA) to ensure presence in Gujarat International Finance Tech-City (GIFT City), a financial free zone in Gujarat, with the aim of facilitating future investments in India. But noticed.
• The Indian side invited other Sovereign Wealth Funds in the UAE to ensure similar presence in India.

Agreement relating to cooperation in the field of industry and advanced technology:

• The Joint Task Force signed a Memorandum of Understanding (MoU) between the Ministry of Industry and Advanced Technology of the United Arab Emirates and the Ministry of Commerce and Industry of India regarding cooperation in the field of Industry and Advanced Technology.
• The MoU will promote cooperation in areas such as space, healthcare, renewable energy, artificial intelligence.
• Both sides aim to promote bilateral cooperation, keeping in mind the important role of industries and advanced technologies in the diversification and growth of economies.

Agreement between Al Etihad Payments and National Payments Corporation of India:

• Another agreement was also signed between Al Etihad Payments, a subsidiary of the Central Bank of the UAE, and National Payments Corporation of India.
• The agreement is a strategic partnership to develop the UAE Domestic Card Scheme (DCS).
• The UAE DCS is a key element of the Central Bank of the UAE's Financial Infrastructure Transformation Program which aims to establish the UAE as a global leader in digital financial infrastructure.