Union Cabinet Approves India-UAE Investment Treaty
- 03 Feb 2024
The Union Cabinet, on February 1, 2024, granted approval for an investment treaty between India and the United Arab Emirates (U.A.E.), anticipating a substantial enhancement in bilateral economic collaboration across various sectors, including manufacturing and foreign direct investment (FDI).
Key Points
- Bilateral Investment Treaty Approval: The Union Government, in its latest decision, also greenlit the signing and ratification of a Bilateral Investment Treaty (BIT) between India and the U.A.E.
- The treaty aims to instill confidence in investors, particularly large-scale investors, fostering an uptick in foreign investments and creating opportunities for overseas direct investments.
- Boosting Investor Confidence: The government emphasized that the treaty's approval is expected to bolster investor confidence, leading to an influx of foreign investments.
- This move is anticipated to have a positive impact on employment generation and promote increased investments between the two nations.
- Economic Goals and Atmanirbhar Bharat: The Cabinet anticipates that this approval will contribute to the realization of the Atmanirbhar Bharat (self-reliant India) initiative. It aims to encourage domestic manufacturing, reduce import dependence, and boost exports.
- Free Trade Agreement and FDI Inflow: India and the UAE have previously implemented a free trade agreement in May 2022. The cumulative Foreign Direct Investment (FDI) into India from April 2000 to September 2023 stood at $16.7 billion.
