Indian Finance Minister to visit Abu Dhabi

Abu Dhabi: Indian Finance Minister P.Chidambaram will reach Abu Dhabi on Saturday evening for an official visit as part of his global tour to attract foreign investments to India.

The visit is expected to boost bilateral economic and trade ties, a top Indian diplomat told Gulf News yesterday.

India and the UAE are largest trading partners to each other with $74.723 billion bilateral trade during the 2012-2013 financial year ended in March, M.K Lokesh, Indian Ambassador to the UAE, said.

Chidambaram is expected to discuss the proposed Bilateral Investment Promotion and Protection Agreement (BIPA) with his UAE counterpart Sultan Bin Saeed Al Mansouri on Sunday, the envoy said.

The minister will discuss this matter but signing the agreement will take time as both parties have not started the negotiations, he said.

Chidambaram is scheduled to meet Shaikh Hamed Bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority (Adia), also on Sunday. A meeting with General Shaikh Mohammad Bin Zayed Al Nahyan, the Deputy Commander of UAE Armed Forced and Abu Dhabi Crown Prince, has also been requested, the envoy said.

Asked the estimated time for conclusion of BIPA, Lokesh said: “We will fast track it through the recently set up UAE-India High Level Task Force on Investments.”

In its first meeting in February, the taskforce had agreed in principle to put in place BIPA and expedite its conclusion. The UAE side had promised the allocation of $2 billion for investments in infrastructure projects in India.

Asked if there was any headway in those proposed investments, the envoy said, it can be expected after the conclusion of BIPA.

The BIPA was also discussed during Indian Foreign Minister Salman Khurshid’s UAE visit in March, Lokesh said.

It has come into focus again following a recent deal between Etihad Airways and India’s private airline Jet Airways with the former to acquire 24 per cent stake in the latter for $379 million (Dh1.39 billion).

Chidambaram concluded a tri-nation tour this week to the UK, France and Qatar.

He had similar visits to Hong Kong, Singapore, Europe, Japan, Germany, Frankfurt, Canada and the US to attract foreign investment into India.