New Delhi, Feb 1: The Union Cabinet presided over by Prime Minister Narendra Modi, has approved the signing and ratification of a Bilateral Investment Treaty between the Republic of India and the United Arab Emirates (UAE).
The anticipated impact of this treaty is poised to boost investor confidence, particularly among major investors, leading to an upswing in Foreign Investments and Overseas Direct Investment (ODI) opportunities. This, in turn, is expected to positively influence employment generation.
The approval holds the potential to augment investments within India, aligning with the vision of Atmanirbhar Bharat (self-reliant India) by fostering domestic manufacturing, curbing import dependence, and promoting increased exports.
The bilateral relations between India and the UAE took a significant stride with the implementation of a free trade agreement in May 2022. India garnered a substantial Foreign Direct Investment (FDI) inflow of $16.7 billion from April 2000 to September 2023.
The UAE, standing as India's third-largest trade partner, is anticipated to witness a surge in bilateral trade, surpassing the $65 billion mark in the current financial year. India holds the position of being the UAE's foremost trading partner for non-oil exports, constituting nearly 15% of the UAE's total non-oil exports on a global scale.