October 27, 2024

UAE emerges as India’s 4th largest investor in FY 2022-23


New Delhi: The Comprehensive Free Trade Agreement between India and the United Arab Emirates (UAE) came into force in May last year. Its effect has also started showing in a year. UAE has emerged as the fourth largest investor in India during the last financial year 2022-23. This information has been given in the official statistics. According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), foreign direct investment (FDI) from the UAE into India tripled year-on-year to $3.35 billion in the last financial year. It was $ 1.03 billion in the financial year 2021-22. In terms of FDI in India, the UAE was ranked seventh in the financial year 2021-22 and moved to the fourth position in 2022-23.

Singapore was the largest investor in India with an investment of $17.2 billion in the last financial year. It was followed by Mauritius ($6.1 billion) and the US ($6 billion). Rudra Kumar Pandey, partner, Shardul Amarchand Mangaldas & Co, said the strengthening of bilateral ties and investment cooperation between India and the UAE can be attributed to policy reforms. He said that the Comprehensive Economic Partnership Agreement (CEPA) has an important place in this. Most of the UAE investments in India are in the services, sea transport, power and construction activities sectors.

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duty free access

The UAE has promised an investment of $75 billion in India’s infrastructure sector. Along with this, he has also assured to become a partner in India’s renewable energy sector. A Comprehensive Free Trade Agreement was launched between India and the UAE from May 1. Under this, many types of goods of both the countries are getting duty free access to each other. Between April 2000 and March 2023, 2.5 per cent of all FDI in India came from the UAE. According to statistics, FDI worth $ 15.6 billion came to India from UAE during this period.



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