3 hrs ago
UAE Signals Additional $25 Billion Investment in India
The United Arab Emirates wants to invest another $25 billion in India.
It has already invested about $25 billion there.
The new investment could support ports, ships, space technology, startups and other industries.
India and the UAE are also trying to use their own currencies more when trading with each other.
Indian exporters can receive rupees, while UAE imports can be paid for in dirhams.
This could reduce the need to use US dollars for every trade payment.
Trade between the countries has grown to about $100 billion since their trade agreement began in May 2022.
They want to increase that trade to $200 billion by 2032.
The United Arab Emirates signalled plans to invest an additional $25 billion in India in the near future.
The proposed investment could raise the UAE’s total investment in India to about $50 billion, with a longer-term target of $100 billion.
Potential investment areas include ports, shipbuilding, space technology, startups, logistics, energy, artificial intelligence and financial technology.
India and the UAE reviewed local-currency trade settlement, payment-system integration, digital currencies and cooperation in energy security.
Bilateral trade has reached about $100 billion, and both countries aim to double it to $200 billion by 2032.
- Who
- India and the United Arab Emirates, represented at the meeting by Commerce and Industry Minister Piyush Goyal and Abu Dhabi Investment Authority Managing Director Sheikh Hamed bin Zayed Al Nahyan.
- What
- The UAE indicated plans for an additional $25 billion investment in India, while both countries reviewed trade, investment, currency and economic cooperation.
- Where
- The meeting took place in Mumbai, India, with potential cooperation also involving Dholera in Gujarat.
- When
- The announcement was made on Monday; the India-UAE Comprehensive Economic Partnership Agreement took effect in May 2022.
- Why
- The countries aim to deepen investment ties, expand bilateral trade, improve local-currency settlement and strengthen cooperation in sectors including energy, logistics and technology.
Key facts
- Proposed additional investment
- $25 billion in the near future
- Existing UAE investment in India
- About $25 billion
- Long-term investment target
- $100 billion in India
- Current bilateral trade
- About $100 billion; one source reported more than $101 billion in FY26
- Bilateral trade target
- $200 billion by 2032
- Local-currency settlement
- Indian exports can be paid for in rupees and UAE imports in dirhams; surplus currency holdings may be converted into US dollars after three to six months
- Recent UAE investments
- Emirates NBD’s approximately $2.75 billion acquisition of a 60% stake in RBL Bank, and International Holding Company’s $1 billion investment for a 41.5% stake in Sammaan Capital
Quotes
Piyush Goyal
India’s commerce and industry minister
“We will need to again double our port capacity in the next decade. And UAE will be an important investor, a trusted investor as we develop new ports or expand our existing ports.”
livemint.com
“We can do that trade only in rupees and dirhams. When goods from India reach the UAE, we can bid in rupees. When goods from the UAE reach India, we can bid in dirhams.”
livemint.com
Sources
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