Cabinet approves bilateral investment agreement with UAE

The Union Cabinet on February 1 signed an investment agreement with the United Arab Emirates (UAE) that is likely to significantly boost bilateral economic engagement in various sectors, including manufacturing and foreign direct investment (FDI). Acknowledged.

The Union government also approved the signing and ratification of the Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (UAE).

The government said the treaty is expected to improve investor confidence, especially large investors, and thereby increase opportunities for foreign investment and foreign direct investment.

The agreement could have a positive impact on job creation, it said in a statement. This agreement will help promote investment between the two countries.

“The Union Cabinet, chaired by Prime Minister Narendra Modi, today approved the signing and ratification of the Bilateral Investment Agreement between the Government of India and the Government of the United Arab Emirates,” it said.

“This approval is expected to increase investment in India and is likely to help realize the goals of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence and increasing exports.” the report said.

The two countries also signed a free trade agreement in May 2022. India received $16.7 billion in FDI from April 2000 to September 2023.