India plans to secure $100 billion in investments from the United Arab Emirates (UAE) over the next few years, as stated by Commerce and Industry Minister Piyush Goyal at a conference on October 7. The announcement was made after the 12th India Conference. The UAE High-Level Investment Task Force was held in Mumbai, highlighting the strengthening of economic ties between the two countries.
Key investment areas
Minister Goyal outlined several areas that are expected to see significant investment from the UAE.
Data centers: Increasing demand for data storage and processing capabilities is expected to attract investment in this area. Artificial intelligence: The focus on AI technology is expected to foster cooperation and financial support. Renewable Energy: With both countries prioritizing sustainable energy solutions, this area is likely to be Transmission Infrastructure: Strengthening energy transmission systems is important to both countries and is likely to receive funding.
Goyal emphasized that these efforts could bring in $100 billion in manufacturing and various other forms of investment.
Current investment status
To date, direct equity investment from the UAE into India is just under $20 billion, with nearly $3 billion invested last year. The UAE has emerged as India’s seventh largest investor, with annual investment volumes increasing threefold in the past five years.
Collaboration efforts
He highlighted the progress made after the Comprehensive Economic Partnership Agreement (CEPA) and noted that both countries are actively exploring new avenues for cooperation.
Free Places: The UAE proposes to provide free places to promote investment, trade, technology and, in the future, tourism. Joint office: Agencies such as Invest India and National Industrial Corridor Development Corporation (NICDC) will participate. This initiative. Additionally, the UAE plans to set up a similar office in India at the same location as Invest India. Indian Institute of Foreign Trade: Plans are underway to open a campus in Dubai and strengthen educational cooperation. Unified Payments Interface (UPI): Ongoing cooperation between India’s UPI and UAE’s AANI aims to facilitate financial transactions.
upcoming projects
Goyal announced that plans for BharatMart are ready and construction will begin soon, with completion targeted for 2026. This effort reflects a broader strategy to strengthen bilateral trade and investment.
Challenges and prospects
Despite ongoing global conflicts, Goyal expressed optimism about the resilience of India-UAE relations. He acknowledged that two ongoing wars and the unresolved Red Sea crisis could spark broader conflict, which could impact trade and business confidence. Nevertheless, he is hopeful that the strong partnership between India and the UAE will continue.
The prospect of India attracting $100 billion in investments from the UAE reflects a significant strengthening of economic ties. With targeted investments in key areas and cooperative efforts, both countries are well-positioned to strengthen their strategic partnership in the coming years.