India-UAE Meet on Investments | 05 Nov 2020

Why in News

Recently, the eighth meeting of the India-UAE High-Level Joint Task Force on Investments has been virtually hosted by India in the wake of the ongoing pandemic.

Key Points

• The Joint Task Force was created in 2012 as a crucial forum for further deepening the economic ties between the UAE and India.
  
  • The mechanism has assumed greater importance as the two countries signed the Comprehensive Strategic Partnership (CSP) Agreement in January 2017 and the Joint Task Force is an integral component of it.
    
    • The focus areas underlined in the CSP were economy with emphasis on a two-way flow of investments, counter-terror cooperation and defence ties.
    • India has signed CSPs with the UK, Indonesia, Vietnam and Australia.
• At the meeting, both sides reviewed the existing UAE Plus and the Fast Track Mechanism created in 2018.
  
  • UAE Plus is a special and dedicated desk constituted under Invest India with Arabic speaking officials to help facilitate investments.
  • The Fast Track Mechanism aims to resolve any challenges experienced by UAE investors in India.
• Scope of Improvement:
  
  • Explore ways to facilitate investments in key Indian and UAE sectors with potential for economic growth, and to maintain their dialogue and further build on the considerable achievements of the Joint Task Force.
  • Encourage investment and cooperation in areas of mutual interest with the purpose to stimulate economic activities in the post-Covid-19 times.
  • Address specific barriers to trade, like anti-dumping duties, tariffs and regulatory restrictions between the two countries with an aim to further strengthen the trade and economic ties and to coordinate efforts and promote mutual cooperation.
  • Continue the work between respective civil aviation authorities to ensure speedy normalisation of air transport operations for their mutual benefit.
  • Development and operation of UAE-based funds to invest in India, in the light of the Foreign Portfolio Investor Regulations 2019 by the Securities and Exchange Board of India (SEBI).
    
    • India agreed to look into these issues with the objective of facilitating further direct investments of UAE-based funds and seeking mutually beneficial solutions in that regard.
  • Focus on opportunities for cooperation and potential investments in key sectors in India including the healthcare and pharmaceutical industry, mobility and logistics, food and agriculture, energy and utilities and others.

India-UAE Relations

• India and the United Arab Emirates (UAE) enjoy strong bonds of friendship based on age-old cultural, religious and economic ties between the two nations.
• The relationship flourished after the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and subsequently with the creation of the UAE Federation in 1971.
• Political Relations:
  
  • In August 2019, UAE awarded ZAYED Medal, their highest civilian award, to the Prime Minister of India for consolidating the long-standing friendship and joint strategic cooperation between the two nations.
  • Indian Prime Minister’s visit to the UAE in August 2015 marked the beginning of a new and comprehensive and strategic partnership.
  • The Crown Prince of Abu Dhabi visited India in February 2016 and had wide-ranging discussions on bilateral, regional and multilateral issues of mutual interest.
• Commercial Relations:
  
  • India-UAE trade was around USD 59 billion making UAE, India’s third-largest trading partner for the year 2019-20 after China and the USA.
  • The UAE is the second-largest export destination of India with an amount of over USD 29 billion for the year 2019-20.
  • For the UAE, India is the second-largest trading partner for the year 2019 with an amount of around USD 41.43 billion for non-oil trade.
  • India’s Major Exports: Food items, Machinery, Gems and Jewellery, Textiles, Engineering and Machinery Products, Chemicals, etc.
  • India’s Major Import: Crude Oil, Petroleum and Petroleum Products, Precious Metals, Minerals, Chemicals, Wood and Wood Products.
• Cultural Relations:
  
  • The two nations share historical ties and have maintained regular cultural exchanges both at official and popular levels.
  • They signed a Cultural Agreement in 1975 and the embassies continue to organise various cultural activities on their own as well as by collaborating with other cultural organisations.
• Indian Community:
  
  • The UAE is home to the Indian expatriate community of more than 2.6 million, the largest expatriate community in the UAE, which has played a major role in the economic development of the UAE.
  • Recently, India has asked the members of the Gulf Cooperation Council (GCC) which also includes UAE, to facilitate the return of Indians who want to resume work with the relaxing of Covid-19-related restrictions.

Source: PIB