India-UAE Fortify Economic Ties with Landmark Agreements

In a notable development, Abu Dhabi's Crown Prince, Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, attended a key business event in Mumbai where India and UAE signed two major agreements to enhance trade and investment between the countries.

Abu Dhabi Crown Prince Sheikh Khaled Bin Mohamed Bin Zayed Al Nahyan, currently on an official visit to India, participated in a significant business event held in Mumbai on Tuesday. During the meeting, India and UAE inked two pivotal agreements aimed at bolstering trade and investment relations between the two nations.

The first agreement initiates the India-UAE Virtual Trade Corridor (VTC) and the MAITRI interface, designed to streamline trade, cut down administrative overheads, and minimize logistics and transport expenses. The second pact is a Memorandum of Understanding (MoU) involving International Resources Holding RSC LTD and a consortium of Indian firms for global cooperation in exploring critical mineral supply chains in third-party countries.

An official statement highlighted the launch of the India-UAE VTC and MAITRI interface under the framework agreement between India and the UAE on the India-Middle East-Europe Economic Corridor (IMEEC). The VTC aims to simplify administrative processes, reduce transportation costs, and improve business efficiency while integrating various Indian operational portals through the MAITRI interface.

The IMEEC, a visionary infrastructure undertaking, promises to redefine global connectivity in the upcoming decades. This ambitious project gained momentum following its announcement at the G20 summit in Delhi last September and has since seen proactive steps by India and the UAE, including the signing of an Inter-Governmental Framework Agreement during the Indian Prime Minister's visit to Abu Dhabi in February.

According to the MoU, International Resources Holding RSC LTD, alongside Oil India Ltd, Khanij Bidesh India Ltd, and ONGC India Ltd, will collaborate on critical mineral exploration in third countries, contributing to the resilience of the critical mineral supply chain, essential for the digital economy's growth.

India-UAE trade reached an impressive USD 84 billion in 2023-24, with the UAE being India's third-largest trading partner after China and the US. UAE also emerged as the second largest export destination for India, accounting for nearly USD 36 billion in exports during the same period.

UAE's investments in India, from 2000 to 2023, total approximately USD 20-21 billion, with USD 18.5 billion in Foreign Direct Investment (FDI) and the remainder as portfolio investment. Notably, the UAE stands as the sixth biggest FDI source for India in 2023-2024 and has pledged to invest USD 75 billion in India's infrastructure sector over time. (ANI)

(With inputs from agencies.)