The United Arab Emirates (UAE) has expressed its intention to establish food processing facilities in India, with an initial investment commitment of approximately USD 2 billion. This announcement was made by Commerce Minister Piyush Goyal during a briefing following the 12th Meeting of the India-UAE High-level Task Force on Investments.
Investment Timeline
Minister Goyal stated that this investment in food parks is expected to materialise within the next two to two-and-a-half years. He emphasised that discussions regarding this investment have been ongoing for a considerable time, highlighting the UAE’s interest in utilising Indian agricultural products to produce high-quality food items tailored to UAE consumers. These products will be made available in India and subsequently exported to the UAE.
Joint Task Force Initiatives
The Joint Task Force, formed in 2013, aims to enhance trade, investment, and economic relations between India and the UAE. Goyal further explained that the USD 2 billion commitment encompasses investments in the food processing industry as well as the logistics necessary for transporting goods to the UAE.
Collaborative Efforts for Food Corridor
To facilitate this initiative, a small working group comprising representatives from the central and state governments of India and the UAE will be established. This group will focus on the development of a food corridor between the two nations, working diligently on a mission-mode basis.
Exploring Emerging Sectors
During the high-level discussions, both countries also explored potential collaborations in emerging sectors, including data centres, artificial intelligence, and co-investment in renewable energy projects, particularly in solar and wind power infrastructure in India.
Investment Promotion Offices
In a significant development, Goyal announced the establishment of investment promotion offices in both countries. The UAE has graciously offered to provide space for these offices at no cost. He mentioned that the UAE will set up an office adjacent to the Invest India office in New Delhi, which will also be offered free of charge.
Enhancing Trade Opportunities
These investment promotion offices are designed to create a streamlined process for information sharing, approvals, and overall opportunities between the UAE and India.
Indian Institute of Foreign Trade in UAE
In addition to the above initiatives, Goyal revealed that the Indian Institute of Foreign Trade (IIFT) plans to establish a campus in the UAE. This will mark the first overseas campus of IIFT, and the institute will soon introduce various courses as part of this initiative.
UAE’s Role in India’s FDI Landscape
The UAE currently ranks as the seventh-largest investor in India, contributing 3% of the total Foreign Direct Investment (FDI) received in the country. Since April 2000, cumulative investments from the UAE have reached approximately USD 19 billion. Conversely, India has made 5% of its total Overseas Direct Investments in the UAE from April 2000 to August 2024.
