This episode of Policy Beyond Borders with Dr Meena Singh Roy endeavours to unravel the multifaceted dimensions of India-UAE economic relations, exploring pivotal agreements like the Comprehensive Economic Partnership Agreement (CEPA) and the recently signed Bilateral Investment Treaty (BIT) and prospects poised to shape the trajectory of regional and global commerce.
Speaker:
Dr Meena Singh Roy
Senior Fellow, Head Eurasia and West Asia Centre, Tillotoma Foundation and Former Fellow & Head West Asia and Eurasia Centre, MP-IDSA.
Moderator:
Neelima A
Associate Research, CPPR
Key Takeaways
India and the UAE enjoy a distinctive partnership, characterized by a strategic comprehensive alliance. The Comprehensive Economic Partnership Agreement (CEPA) serves as a significant catalyst for enhancing bilateral relations, as evidenced by the notable surge in bilateral trade figures from 72.9 billion in 2021-22 to 84.8 billion in 2022-23, representing a 16 percent increase.
The formal establishment of the UAE-India CEPA council marks another milestone in fostering bilateral trade and economic development cooperation. Noteworthy is the remarkable growth in Foreign Direct Investment (FDI), with the UAE ranking as the highest contributor to FDI in India across various sectors, including telecommunications, infrastructure, and energy.
An exemplar of this burgeoning partnership is Abu Dhabi-based Mubadala's first direct private equity investment in India, acquiring a 3.75% stake in Manipal, India's second-largest hospital chain, valued at ₹40,000 crore. This underscores the depth of collaboration and private sector interest in advancing relations between the two nations, transcending governmental involvement.
The Bilateral Investment Treaty (BIT) is poised to augment the economic partnership between India and the UAE, providing a robust legal framework conducive to bilateral investment activities.
Sustaining the momentum of cooperation between India and the UAE is imperative, with due recognition accorded to the pivotal role of the private sector. The healthcare sector, in particular, holds immense potential for collaboration between the two nations, presenting promising avenues for further exploration and partnership.
