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Monday, June 12, 2023 at 12:40pm (IST)
Source: JND
A data from the Indian government shows that the UAE has become the fourth largest investor in India in FY22-23. It was seventh on the previous 2021-22 list.
Whereas Singapore remains the largest investor in India with US$17.2 billion in investments in FY23, followed by Mauritius with US$6.1 billion and US with US$6.0 billion.
Last May, India signed a comprehensive free trade agreement with the UAE.Also, UAE foreign direct investment (FDI) in India is set to soar three-fold in 2021-22 from $3.35 billion to $1.03 billion this fiscal, data from Depicts the Department of Industry and Domestic Trade Promotion (DPIIT).
The Comprehensive Economic Partnership Agreement (CEPA) signed on February 18, 2022 is one of the main factors behind the rise in UAE FDI to India. According to the agreement, various goods of the two countries will enter each other’s market with zero tariffs. In addition to this, the two countries have also received relaxed norms to promote investment.
“The rapid strengthening of bilateral relations and investment cooperation between India and the United Arab Emirates (UAE) is mainly attributable to strong bilateral relations between India and the UAE, growth in investment commitments in the UAE, and policy reforms to further simplify doing business,” PTI quoted Shardul Amarchand Mangaldas & Co Partners In the words of Rudra Kumar Pandey.
The UAE mainly invests in India in sectors such as services, shipping, power and construction activities.
“Apart from CEPA, another growth engine for UAE FDI in India is the UAE’s investment commitment. The UAE has pledged to invest $75 billion over a period of time in India’s infrastructure sector. It has also committed to partnering with India in the renewable energy sector,” Pandey said. explained further.
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