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India-UAE relations are advancing at a record pace, according to Union Minister Piyush Goyal
The topic of boosting bilateral investments in important industries like manufacturing, infrastructure, energy, and technology was also discussed.
India: New Delhi – According to Union Minister for Commerce Piyush Goyal, relations with the UAE are gaining an unparalleled speed due to the abundance of chances for cooperation and rising investments in important fields like technology and infrastructure.
Goyal and Sheikh Hamed bin Zayed Al Nahyan, a member of the Executive Council of the Emirate of Abu Dhabi, co-chaired the 10th meeting of the high-level Joint Task Force on Investments between India and the United Arab Emirates.
The co-chairs acknowledged the early trends of the beneficial impact of the historic India-UAE Comprehensive Economic Partnership Agreement (CEPA) on bilateral commerce between the two countries since it entered into force in May 2022 during this tenth meeting of the Joint Task Force.
The co-chairs urged businesspeople on both sides to take full advantage of the favourable trade ecosystem established by CEPA. The co-chairs also mentioned that the CEPA Joint Committee and its associated subcommittees had been established, among other CEPA-related advancements.
The discussions for the bilateral investment treaty between India and the UAE were discussed by the two delegations. There have been a total of twelve rounds of negotiations. Both parties agreed that significant progress could have been made since the negotiations began and reaffirmed their commitment to moving the process along quickly in order to reach an early conclusion of a fair and beneficial agreement.
The topic of boosting bilateral investments in important industries like manufacturing, infrastructure, energy, and technology was also discussed.
It was decided that in this regard, the relevant authorities in both countries would look into the creation of effective and integrated Single Window Solutions and Virtual Trade Corridors in order to cut down on the time and expenses associated with trade and investment-related procedures.
It was decided that the Department of Economic Development of Abu Dhabi would study this area of collaboration with the relevant counterparties in India in order to come to an execution strategy that would be advantageous to both sides.
The two sides reviewed the UAE’s request to provide tax incentives to specific UAE sovereign investment entities under the existing UAE-India Tax Treaty and India’s response to provide the same under the existing domestic tax laws of India in order to encourage increased investment flows by UAE sovereign investment entities into India.
It was agreed that the two countries’ policy objectives should be met by the outcome of ongoing bilateral consultations. In this connection, it was recognised and welcomed that the Finance Act 2020 and subsequent notifications of tax exemptions supported UAE sovereign entities.
The development of a method for conducting bilateral trade in national currencies was a significant topic considered. Both parties concurred to continue discussions regarding the Unified Payment Interface (UPI) as a single digital payments platform, which are currently being held between the Reserve Bank of India and the Central Bank of the United Arab Emirates.
The substantial and expanding trade and investment links between India and the UAE offered a favourable backdrop, and both parties recognised the value of using the Joint Task Force as a venue to discuss specific problems and challenges experienced by the businesses while investing in each other’s nations.
For the purpose of identifying, resolving, and accelerating challenges experienced by UAE enterprises and investors in India, India established a Fast Track Mechanism in 2019 and a UAE Plus Desk in 2018.
A commendation was given to the UAE Special Desk in India for its work in directing and enabling UAE investments in various areas. In this regard, it was decided that the Indian side will give the UAE Fast Track Mechanism in India the support it needs to guarantee the prompt settlement of open concerns and challenges faced by a number of UAE businesses and banks operating in India.
It was also decided that the UAE would immediately establish a similar India Fast Track Mechanism to address concerns relating to Indian investors there and to help Indian businesses enter and expand in the UAE market. In this regard, concerns about several Indian companies operating in the UAE were noticed, and it was decided that the UAE side would offer the necessary assistance to guarantee a prompt and amicable settlement of these concerns.
Anurag Jain, Secretary, Department for Promotion of Industry and Internal Trade, Thani bin Ahmed Al Zeyoudi, UAE State Minister for Foreign Trade, Ahmed A.R. Albanna, UAE Ambassador to India, and senior officials from relevant government agencies, investment entities, and companies from both countries attended the meeting.
In order to develop trade, business, and economic links between the UAE and India, the Joint Task Force was founded in 2013. Since the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE was signed and the Joint UAE-India Vision Statement was unveiled in February 2022 during the virtual summit between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan, this was the Joint Task Force’s first meeting.
The CEPA is a significant trade agreement that will change the economic, trade, and investment links between the two countries and spur economic growth. Both of these historic sites offer a clear blueprint for the expedited further development of the Comprehensive Strategic Partnership between the two nations.
