MUMBAI: In a significant move to bolster economic cooperation, the UAE has announced plans to invest approximately $2 billion in establishing food processing facilities in India, India’s Commerce Minister, Piyush Goyal said during the 12th Meeting of the India-UAE High-level Task Force on Investments.
The strategic investment is aimed at creating food parks over the next two to two-and-a-half years, designed to process high-quality agricultural products sourced from Indian farmers for the UAE market.
This investment not only reinforces the longstanding trade and economic ties between the two nations but also underscores the mutual benefits that can arise from such collaborations.
The establishment of a food corridor, as proposed by the Joint Task Force, which has been operational since 2013, is expected to enhance the efficiency of this bilateral trade, aligning with both countries’ aspirations to optimise agricultural output and food security.
More sectors on radar
During the meeting, discussions extended beyond food processing to include emerging sector such as data centres, artificial intelligence, and renewable energy. The broadened focus indicates a commitment to diversifying the economic relationship and fostering innovation across various industries. Furthermore, the initiative to set up investment promotion offices in both nations will facilitate smoother transactions and enhance bilateral trade opportunities.
Notably, the UAE has offered to host such offices without cost, reflecting its eagerness to strengthen economic ties.
Additionally, the establishment of the Indian Institute of Foreign Trade (IIFT) in the UAE highlights the commitment to educational exchanges and skill development, which are essential for sustaining economic growth.
The UAE’s status as the seventh-largest contributor of Foreign Direct Investment (FDI) in India, with cumulative investments approaching $19 billion from April 2000 to June 2024, demonstrates the depth of this partnership. Conversely, India’s investment in the UAE constitutes about 5% of its total Overseas Direct Investments, indicating reciprocal economic engagement.
