INDIA – UAE JOINT TASK FORCE

Why in News?
The Eleventh meeting of the UAE-India High Level Joint Task Force on Investments (‘the Joint Task Force’) was held today in Abu Dhabi, co-chaired by His Highness Sheikh Hamed bin Zayed Al Nahyan, the Managing Director of Abu Dhabi Investment Authority (ADIA), and Shri Piyush Goyal, Minister of Commerce & Industry, Consumer Affairs, Food & Public Distribution, and Textiles, Government of India

What is INDIA – UAE JOINT TASK FORCE?

The Joint Task Force was established in 2013 to promote trade, investment and economic ties between India and the UAE. The Joint Task Force has provided an effective mechanism for discussion on opportunities & prospects for investments in both countries as well as resolution of issues faced by investors of the two countries.

OUTCOMES

The progress made on the implementation of the Comprehensive Economic Partnership Agreement (CEPA) between the UAE and India, which came into force in May 2022. The CEPA was a landmark agreement designed to spark a new era of cooperation between two nations, strengthening the long-standing cultural, political and economic ties. It has helped reduce tariffs on more than 80 percent of product lines, eliminate barriers to trade and create new pathways for investment and joint ventures.

Discussed the status of negotiations for the India-UAE Bilateral Investment Treaty, underscoring the need to accelerate the bilateral discussions for an early conclusion of a balanced agreement that benefits both countries and their investors.

Discussed ways and incentives for encouraging further growth in investment flows from UAE sovereign investment entities into India. The Indian side shared opportunities for investments in priority sectors like renewable energy, health, semi-conductors and asset monetization sectors in India.

Progress on the creation of the Fast Track Mechanism to facilitate Indian investment into the UAE was also discussed. The Indian side requested for strengthening the mechanism especially for facilitation of investments in priority sectors like renewable energy and energy transition. Both sides agreed to use this channel as a means of developing more competitive and accommodating ecosystems that can enable the private sector to fully pursue expansion opportunities in each other’s markets.

India-UAE Start-Up Bridge, a joint initiative between the UAE Ministry of Economy and India’s Ministry of Commerce and Industry. The bridge is expected to act as a one-stop platform that offers training sessions and knowledge-sharing on important topics such as market access, investment funds, venture capital, incubators and the respective business landscape in each country.

Establishment of Abu Dhabi – India Virtual Trade Corridor, which aims to increase overall trade volumes by developing data exchange systems to facilitate paperless trade between the two countries, improving efficiencies and security. Reviewed the progress on key projects including the food security corridor related investment under I2U2 Framework into India.

The Joint Task Force noted the progress of plans for the Abu Dhabi Investment Authority (ADIA) to establish a presence in Gujarat International Finance Tec-City (GIFT City), a financial free zone in Gujarat, with the aim of facilitating future investments into India. Indian side invited other Sovereign
Wealth Funds in the UAE to establish similar presence in India.
The Joint Task Force witnessed the signing of an MOU between the UAE Ministry of Industry & Advanced Technology and the Ministry of Commerce & Industry of the Republic of India, related to cooperation in the fields of Industry and Advanced Technology.