Indian Government Establishes Invest India Office in Dubai to Attract UAE Investments

The Indian government plans to establish an Invest India office in Dubai. This will serve as a contact point for UAE investors interested in India, according to Union Minister Piyush Goyal. The announcement came after the 12th India-UAE High-Level Task Force on Investment meeting. Additionally, the first overseas campus of the Indian Institute of Foreign Trade will be set up in Dubai, benefiting the large Indian community there.

Representative image

During the meeting, co-chaired by Goyal and Sheikh Hamed bin Zayed Al Nahyan, progress on several initiatives was reviewed. These include local currency trade, payment system integration, and cooperation on Central Bank Digital Currencies. The development of a food park in Ahmedabad and a Virtual Trade Corridor were also discussed. Both sides expressed satisfaction with the rapid implementation of these projects.

India-UAE Economic Partnership

The India-UAE partnership is built on innovation, investment, and sustainable development. The Joint Task Force meeting assessed various initiatives like local currency settlement and Bharat Mart. Goyal highlighted the strong framework provided by the India-UAE CEPA and Bilateral Investment Treaty. He encouraged stakeholders to explore further investment opportunities and trade possibilities.

The Task Force was established in 2013 to enhance trade and economic ties between the two nations. It reviewed the India-UAE CEPA, one of the fastest-negotiated Free Trade Agreements. As a result, bilateral trade has consistently increased, with non-oil trade reaching USD 28.2 billion in early 2024, marking a 9.8% year-on-year rise.

Investment Opportunities and Initiatives

Recent strategic agreements during Sheikh Khalid bin Mohamed Al Nahyan's visit to India were noted. UAE entities have invested approximately USD 100 billion in key Indian sectors like energy and logistics. The UAE remains India's largest Arab investor, contributing around USD 3 billion in FY 2023-24.

The UAE was the sixth-largest FDI source for FY 2023-24 and seventh overall since 2000. Over 70% of GCC investments in India come from the UAE. The new Bilateral Investment Treaty, effective from August 31, 2024, aims to strengthen investment flows further.

Food Parks and Bilateral Investment Treaty

Food parks are identified as areas for greater collaboration between India and the UAE. These parks will boost farmer incomes, create jobs in food processing, and enhance UAE's food security. Goyal stated that the Bilateral Investment Treaty will increase investor confidence by providing a stable tax regime and recourse options for disputes.

Goyal mentioned that some Indian companies face issues with the UAE, while some UAE companies have concerns about India. The treaty provides a framework to resolve these issues effectively.

Digital Payment Collaboration

The National Payments Corporation of India (NPCI) is working with Al Etihad Payments (AEP) to create JAYWAN, a domestic card scheme in the UAE. This collaboration is based on RuPay card technology shared with AEP to enhance digital payment sovereignty in the UAE.

The governments are also interlinking UPI (India) and AANI (UAE) payment platforms for seamless cross-border transactions. This initiative is part of broader efforts to strengthen economic ties between the two countries.

The Invest India office in Dubai will be its first in the Middle East and second overseas after Singapore. Progress on Bharat Mart was also noted, leveraging Jebel Ali Port's strategic location to boost India's exports globally.