UAE-India Joint Task Force Meeting Discusses Investment and Cooperation

• 07 Oct 2023

On 5^th October, 2023, the Eleventh meeting of the UAE-India High Level Joint Task Force on Investments was held in Abu Dhabi.

Key Points

• CEPA Boosts Bilateral Trade: The meeting assessed progress made under the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, in effect since May 2022.
• CEPA has significantly reduced tariffs on over 80% of product lines, removed trade barriers, and stimulated investment and joint ventures.
• The first year of CEPA implementation saw bilateral non-oil trade reach US$50.5 billion, a 5.8% increase from the previous year, bringing the two nations closer to their US$100 billion non-oil trade target by 2030.
• Bilateral Investment Treaty and Investment Flows: Discussions highlighted the status of negotiations for the India-UAE Bilateral Investment Treaty, emphasizing the need for balanced agreements that benefit both nations and investors.
• The meeting explored strategies and incentives for promoting increased investment flows from UAE sovereign investment entities into India, with a focus on sectors like renewable energy and asset monetization.
• Fast Track Mechanism and Start-Up Bridge: Progress on the creation of the Fast Track Mechanism for Indian investment in the UAE was discussed, with a specific emphasis on priority sectors like renewable energy.
• The India-UAE Start-Up Bridge, aimed at facilitating knowledge-sharing and training in various areas, including market access and venture capital, was also on the agenda.
• Abu Dhabi-India Virtual Trade Corridor; The establishment of the Abu Dhabi – India Virtual Trade Corridor, designed to enhance trade efficiency and security through data exchange systems, was a key topic, with plans for its early implementation.
• Food Security Corridor and Investment Initiatives: Progress on the food security corridor investment under the I2U2 Framework, intended to address food security challenges and strengthen supply chains, was reviewed.
• The Abu Dhabi Investment Authority (ADIA) is set to establish a presence in Gujarat International Finance Tec-City (GIFT City), inviting other Sovereign Wealth Funds in the UAE to do the same in India.
• Cooperation in Industry and Advanced Technology; An MOU between the UAE Ministry of Industry & Advanced Technology and the Ministry of Commerce & Industry of India was signed, focusing on cooperation in areas like space, healthcare, renewable energy, and artificial intelligence.
• Additionally, an agreement was inked between Al Etihad Payments and the National Payments Corporation of India to develop the UAE's Domestic Card Scheme (DCS), advancing the nation's digital financial infrastructure.