India recently hosted the eighth meeting of the India-UAE High-Level Joint Task Force on Investments virtually due to the current pandemic. This Joint Task Force was established in 2012 as a vital platform for nurturing economic relations between the UAE and India.
This platform has gained more importance after the signing of the Comprehensive Strategic Partnership (CSP) Agreement between the two countries in January 2017. The key areas focused on by the CSP include economy, counter-terror cooperation, and defence ties, with specific focus on reciprocal investment flow.
The Joint Task Force is an indispensable part of these efforts. Besides UAE, India has also signed CSPs with the UK, Indonesia, Vietnam, and Australia.
Review and Scope of Improvement
During this meeting, both sides reviewed UAE Plus and the Fast Track Mechanism—two initiatives launched in 2018. UAE Plus is a specialized desk under Invest India that includes Arabic-speaking officials to facilitate investments. The Fast Track Mechanism aims to resolve any challenges UAE investors face in India.
The Task Force also examined areas needing improvement:
– Facilitating investments in essential Indian and UAE sectors that offer potential for economic growth.
– Encouraging investment and cooperation in mutually beneficial areas to stimulate economic activities post-Covid-19.
– Addressing trade barriers, such as anti-dumping duties, tariffs, and regulatory restrictions to fortify economic and trade ties.
– Expediting normalization of air transport operations by working closely with respective civil aviation authorities.
Investment and Cooperation
The Task Force also discussed UAE-based funds investing in India, following the Foreign Portfolio Investor Regulations 2019 by the Securities and Exchange Board of India (SEBI). India agreed to explore these issues to facilitate further direct investments from UAE-based funds.
Both sides decided to concentrate on potential investments and cooperation in key sectors, including healthcare, pharmaceuticals, mobility and logistics, food and agriculture, energy and utilities.
India-UAE Relations: A Historical Perspective
India and the UAE enjoy a robust friendship based on historical cultural, religious, and economic ties. The relationship saw considerable growth following the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and with the subsequent formation of the UAE Federation in 1971.
Political Relations
In August 2019, the UAE awarded their highest civilian accolade, the ZAYED Medal, to the Indian Prime Minister, recognizing his role in strengthening Indo-UAE strategic cooperation and friendship.
Commercial Relations
India-UAE trade reached around USD 59 billion in fiscal year 2019-20, making the UAE India’s third-largest trading partner. For the UAE, India is the second-largest trading partner with non-oil trade amounting to around USD 41.43 billion.
Cultural Relations
The two nations have maintained regular cultural exchanges since the signing of the Cultural Agreement in 1975. The embassies continuously organize various cultural activities collaboratively with other cultural organizations.
Indian Community Influence
With over 2.6 million residents, the Indian expatriate community is the largest in the UAE, contributing significantly to the UAE’s economy.
Recent Developments
Invited as guest of honor, India attended the 46th session of the Council of Foreign Ministers of the Organisation of Islamic Cooperation (OIC) in 2019. UAE defended the decision to invite India despite Pakistan’s objections.
In February 2020, the UAE received the operating license for the first nuclear power plant in the Arab world. The UAE also launched their first interplanetary mission, Mars probe Amal (Hope), in July 2020.
In September 2020, the UAE entered into peace agreement with Israel and Bahrain under the Abraham Accord, marking the first Arab-Israeli peace deal in 26 years.
