Indian government approves a bilateral treaty with the UAE to promote investments
The Indian government has given the green light to a bilateral investment treaty (BIT) with the UAE, aiming to stimulate increased investments and bolster investor confidence.
This strategic move not only signals a commitment to fortifying economic ties but also aligns with India's broader objective of fostering foreign investments and expanding opportunities for overseas direct investment (ODI). The announcement was made through a post on X by the country’s External Affairs Minister, Dr. S. Jaishankar.
On February 1, the Union Cabinet met and decided under the leadership of Indian Prime Minister Narendra Modi. This decision is anticipated to pave the way for stronger economic collaboration between the two nations. Prime Minister Modi is scheduled to visit Abu Dhabi on February 13, underscoring the significance of the bilateral relationship.
In a noteworthy development in May 2022, the UAE and India executed the Comprehensive Economic Cooperation Agreement (CEPA), aiming to propel non-petroleum trade to $100 billion by 2030. This agreement reflects a commitment to diversify and enhance economic engagement beyond traditional sectors.
The recent surge in bilateral trade between the UAE and India underscores the success of their economic partnership. In the full fiscal year 2022–23, the trade volume reached an impressive $84.5 billion, marking a substantial year-on-year increase of 16%. This surge highlights the resilience and dynamism of the economic ties between the two countries.
The approval of the BIT aligns with the broader economic strategy, contributing to the creation of a conducive environment for investments and fostering mutual economic growth. As both nations continue to strengthen their economic collaboration, the ratified BIT is poised to play a pivotal role in facilitating and protecting investments, ultimately benefiting the economies of India and the UAE.