Besides infrastructure, the other areas of investment opportunities include the pharmaceuticals, services, engineering and agro-processing sectors
India on Monday invited Abu Dhabi Investment Authority (ADIA), world's largest sovereign wealth funds, to invest in the $90-billion ambitious Delhi Mumbai Industrial Corridor (DMIC) and other infrastructure funds.
Both countries also agreed to set up a joint working group to facilitate investment for this purpose. The issue was discussed between Commerce and Industry Minister Anand Sharma and Abu Dhabi Investment Authority (ADIA) Managing Director Sheikh Hamed bin Zayed Al Nahyan here.
“We have invited ADIA to invest in the DMIC and other infrastructure projects,” Mr. Sharma said after the meeting. The ADIA, which is as large as $1 trillion, has expressed keen interest in investing in India. “The ADIA will come forward to work with India in the DMIC project. We have agreed to set up a joint working group to work out the modalities. We will be happy to see ADIA participation in India's infrastructure-building,” he said.
Mr. Sharma said India planned to invest $1 trillion in infrastructure over the next five years. “This is an opportunity to enter this huge market,” Mr. Al Nahyan said.
Keeping in mind the worsening investment climate in developed nations, both leaders agreed that the UAE and India should work towards a greater level of engagement. Besides infrastructure, the other areas where both sides can explore investment opportunities include the pharmaceuticals, services, engineering and agro-processing sectors. ADIA has asked for more support in its exploration of opportunities in the Indian market.
Mr. Sharma also said that the UAE should encourage other members of the Gulf Cooperation Council (GCC) to hold a third round of negotiations on the proposed Free Trade Agreement between India and the GCC at the earliest.
The UAE is the biggest trading partner of India in the entire West Asia and North Africa (WANA) region and accounted for about 63 per cent of India's total trade with GCC countries in 2010-11. Bilateral trade between the countries has registered an over 300 per cent increase in the last five years and stood at $66.56 billion in January-November 2011.