Dubai: In line with its ongoing efforts to create an ideal investment environment internationally, the UAE, in coordination with the relevant authorities in India, has managed to reach tax exemptions for the UAE's sovereign investments in India applicable to the infrastructure sector for all sovereign investment institutions in the UAE, both federally and locally.
This is part of a set of amendments and investment incentives recently announced by the Indian government to attract and encourage foreign sovereign investment in sectors of importance to India.
Younis Haji Al Khoori, Undersecretary of MoF, highlighted the significance of these initiatives and praised the UAE's close strategic ties with India, while also stressing the importance of strengthening them further.
Al Khoori said, "These exemptions are part of the UAE's unrelenting efforts to further improve economic relations with countries around the world. The move also reflects the success of the recent negotiations between the joint venture teams from the UAE and India. These meetings strengthen bilateral ties and help create investment incentives that support trade exchange and economic activities between the two countries."
In the future, other sectors may be identified for tax exemptions by the Indian government. These exemptions will come into effect on 01 April 2021, and will be limited to investments made within the period not exceeding 31 March 2024, provided that the investment is maintained for at least three years.