Abu Dhabi: The bilateral trade between India and the UAE has been growing with the UAE investments into India jumping by about $1 billion in the last on year, figures provided by Indian Embassy in Abu Dhabi show.
The FDI from the UAE from the year 2000 to 2016 has been $4.03 billion representing 1.40 per cent in terms of total FDI inflows with $1 billion going to India in just one year from April 2015 to March 2016.
“A reported one billion dollar investment went from the UAE to India during the last one year is an encouraging development. A number of Indian companies are also investing in UAE,” said Neeta Bhushan, Charge d’ Affaires at the Indian Embassy in Abu Dhabi.
“The visit of [His Highness] Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces as the Chief Guest for our Republic Day celebrations in January 2017 will help to further cement our close ties,” she said.
According to the embassy, the bilateral trade between the two countries is around $50 billion for the year 2015-16 making UAE, India’s third largest trading partner after China and the US. The number of Indian companies registered with the UAE Ministry of Economy in 2014 stood at 4,365, 177.
The figure is less compared to the previous year as imports value from the UAE reduced from $26 billion in 2014-15 to $19 billion for 2015-16 largely due to decline in crude oil prices.
“The import figures show that quantity wise there is an increase of more than 25 per cent in crude oil for 2015-2016 when compared to the previous year but in value it is 42 per cent less due to decline in oil prices,” Indian Embassy said.
In exports, UAE is the second largest export destination of India with an amount over $30 billion for the year 2015-16.
On the investment front, the UAE has been pumping in money various sectors including in infrastructure development, construction, power, metallurgical industries, and services sector among others.
The investment went up after the two high profile visits by the leaders of both the countries in the last one year.
Indian Prime Minister Narendra Modi’visited the UAE in August last year and His Highness Shaikh Mohammad Bin Zayed Al Nahyan made an official to India in February this year.
Coordinated efforts by India and UAE government agencies are expected to result in big surge in bilateral business volumes. “Shaikh Mohammad Bin Zayed visited India with over a 100-member business delegation. We agreed to increase our trade by 60 per cent the next five years,” said Bhushan.
UAE was invited to participate in the India’s growth story through various projects. Since then a large number of high-level delegations from both nations have made mutual visits to explore opportunities for cooperation. These include visits by Chief Minister of Rajasthan, Deputy Chief Minister of Punjab as well as business delegations from Gujarat and several export promotion councils in India.
“On October 19 and 20, we are having the India UAE economic forum in Dubai, in which Nitin Gadkari, Indian Minister of Road, Transport and Highways, is expected to deliver the opening speech. The UAE Ministry of Economy is also our partner in the forum,” said Bhushan.
During Modi’s visit last year, the two countries decided to set up the UAE-India Infrastructure Investment Fund with a target of $75 billion (Dh275 billion) to boost economic relations.
The two countries also plan to promote strategic partnerships in the energy sector, including UAE’s participation in India in the development of strategic petroleum reserves, upstream and downstream petroleum sectors.
A high-level delegation from India has recently visited UAE to take forward discussions on the strategic petroleum reserves project.