UAE companies are demonstrating a strong interest in increasing investments in India across a multitude of sectors, including infrastructure, data centers, banking, startups, and logistics, according to Commerce and Industry Minister Piyush Goyal. This was highlighted during the 13th India-UAE High-Level Joint Task Force on Investments in Abu Dhabi, where Goyal led a 75-member business delegation.

Both India and the UAE are actively pursuing collaborations in areas such as renewable energy, shipbuilding, retail, and pharmaceuticals, with the aim of achieving rapid investment growth. The two countries have reset their targets and are actively working to increase investments rapidly in different sectors.

Key Sectors of Interest

• Infrastructure: UAE firms recognize the significant potential in India's infrastructure sector. India and the UAE can jointly develop infrastructure projects in third countries, including mining and housing.
• Banking: There has been considerable interest from UAE companies in expanding their operations within India's banking sector. Bankers are finding it increasingly attractive to expand their operations in India.
• Startups: The UAE is keen on investing in Indian startups, recognizing India as a key investment destination. The UAE government views Indian startups as a strategic fit and is actively enabling cross-border migration of innovation and entrepreneurship.
• Logistics: Potential investors are showing interest in the logistics ecosystem in India. The Indian warehousing stock has grown ~3X since 2016, demonstrating the breakneck speed at which India's logistics sector is maturing.
• Data Centers: UAE companies are looking at investing in data centers in India to increase their investments.
• Green Energy: The UAE is very keen to look at investments in green and renewable energy.

Strategic Initiatives and Agreements

The Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE, which came into effect in May 2022, has been instrumental in strengthening bilateral trade and investment. The CEPA has nearly doubled bilateral merchandise trade, increasing from USD 43.3 billion in FY21 to approximately USD 83.7 billion in FY24. India's merchandise exports to the UAE also increased from around USD 28.04 billion during FY21-22 to USD 36.63 billion during FY24-25.

The UAE-India CEPA Council has launched the UAE-India CEPA Start-up Series to boost innovation and support the global expansion of Indian start-ups. The program aims to identify and onboard five high-potential Indian startups into the UAE ecosystem.

Bharat Mart

The UAE has allocated land for Bharat Mart, a 2.7 million square feet complex located in the Jebel Ali Free Zone. Construction is expected to be completed by 2027. Approximately 9,000 companies have expressed interest in this project, which aims to enable Indian manufacturers and exporters to showcase their products to the world.

Future Outlook

India and the UAE have set an ambitious target to increase non-oil trade to US$ 100 billion in the next three to four years. Both sides have agreed to explore new avenues for investment and collaboration across critical sectors, including maritime, defense, aerospace, and space technology. India and the UAE will also work jointly on modalities to expand investments in regions such as Africa and the Gulf Cooperation Council (GCC), leveraging the UAE's financial strength and India's skilled talent pool.