Abu Dhabi: Trade ties between the UAE and India are expected to get a boost as Indian Prime Minister Narendra Modi embarks on a two-day visit to the UAE starting from August 16. This will be the first visit by an Indian prime minister in the last 34 years.
Modi will arrive in Abu Dhabi on August 16 and will head to Dubai the following day. The details of his visit are still sketchy but it is expected that a number of deals would be signed. He is also likely to visit a labour camp in Abu Dhabi to understand the living condition of workers.
India-UAE trade, valued at $180 million (Dh660.6 million) per annum in the 1970s, is today around $60 billion making the UAE, India’s third largest trading partner for the year 2014-15 after China and the US, an Indian Embassy official said.
“The visit by the Indian Prime Minister will strengthen already robust trade ties between the two countries. The UAE and India have strong trade ties and a task force has been set up to increase investment in both countries,” said Mohammad Shahid Alam, second secretary of Commerce, Economics and Culture at the Indian Embassy.
According to the Indian Embassy, the UAE is the second largest export destination of India with an amount of more than $3 billion for the year 2014-15. For the UAE, India was the largest trading partner last year with more than $28 billion in non-oil trade.
There is an estimated $8 billion UAE investment in India of which around $3.01 billion is in the form of foreign direct investment, while the remaining is portfolio investment.
A number of UAE companies have invested in India including Emaar, DP World, Abu Dhabi’s National Petroleum Construction Company, Abu Dhabi National Energy Company (Taqa), Abu Dhabi Investment Authority, Eithad Airways etc.
Boost investment
Meanwhile, Indian businessmen in the UAE have welcomed the visit of the Prime Minister. Dr BR Shetty, Executive Vice-Chairman and Chief Executive Officer of NMC Healthcare said this is an important visit.
“It is going to be a great event. The Prime Minister’s concept is to get close to neighbouring countries and boost investment. The visit will help both the countries,” said Dr Shetty, who is close to Modi.
He said the Abu Dhabi government is keen to invest in the infrastructure development sector in India, is areas such as power, highways and drinking water.
“He will sign a number of deals though details are not yet ready. He will also visit a [workers’ accommodation location] to understand the living condition of workers,” he said.
More than 2.6 million Indians live in the UAE and their annual remittance is estimated to be more than $8 billion. Investments by Indian companies in the UAE are believed to be in excess of $55 billion.
M.A. Yousuf Ali, Managing Director of Lulu International and Director of Abu Dhabi Chamber of Commerce and Industry said there likely to be a business level delegation meeting with the visiting Prime Minister on issues pertaining to energy, infrastructure development and IT related matters.
“The key areas of discussion are being worked out and will be finalised in the next two days. Abu Dhabi Chamber of Commerce is looking forward to his visit,” he said.
Massive developments
He said Lulu Group is investing more than Dh2 billion in Telangana state of India in setting up a food processing unit and shopping mall.
“The UAE economy is booming with massive developments in hospitality industry, aviation and trading. This is the right time for the Prime Minister to visit the UAE.”
President of Indian Business and Professional Council (IBPC) in Dubai said the visit was highly required and will give a fillip to trade relationships between the two countries.
“It is a great initiative by Modi and his team. The business transactions have undergone a huge change over the years from negligible business in 1960s to more than $60 billion at present,” said Kulwant Singh, President of IBPC.
