India on Monday invited the sovereign wealth funds from the United Arab Emirates (UAE) to participate in the second infrastructure fund that will be launched later this year as both countries decided to double the bilateral trade to $ 200 billion by 2032.
The new fund builds on the success of the National Investment and Infrastructure Fund (NIIF) which is already operational. The first NIIF already has investment from Abu Dhabi Investment Authority (ADIA).
In the bilateral meeting between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan where both sides reviewed the full scope of bilateral cooperation and welcomed discussions on a potential UAE partnership for the development of the Special Investment Region in Dholera in Gujarat. UAE president was in New Delhi for a short visit that lasted just a few hours.
Development of key strategic infrastructure
The envisioned partnership would include the development of key strategic infrastructure, including an international airport, a pilot training school, a maintenance, repair and overhaul (MRO) facility, a greenfield port, a smart urban township, railway connectivity, and energy infrastructure, a joint statement on the visit of UAE President said.
During the visit a sale and purchase agreement between Hindustan Petroleum Corporation (HPCL) and Abu Dhabi National Oil COmpany (ADNOC) was signed, The agreement provides for purchase of 0.5 million metric tonnes per annum (MMPTA) by HPCL from ADNOC Gas for a period of 10 years starting 2028.
To double the trade from $ 100 billion in 2024-25 to $ 200 billion by 2032 both leaders directed their teams to work towards connecting Micro, Small and Medium Sector Enterprises (MSMEs) on both sides. In this context, they called for the expeditious implementation of key initiatives, such as the ‘Bharat Mart’, the ‘Virtual Trade Corridor’ and the ‘Bharat-Africa Setu’ to promote MSME products across the Middle East, West Asia, Africa and the Eurasia region.
UAE–India cooperation in food security
Both sides reaffirmed their strong commitment to enhancing UAE–India cooperation in food security. In space a Letter of Intent between the Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the Space Agency of the UAE for a Joint Initiative to Enable Space Industry Development and Commercial Collaboration.
The objective of space cooperation is India-UAE partnership in developing joint infrastructure for space and commercialization, including launch complexes, manufacturing and technology zones, incubation centre and accelerator for space start-ups, training institute and exchange programme.
India and UAE have already signed a Comprehensive Economic Partnership Agreement (CEPA) in 2022 and followed it up by the Bilateral Investment Treaty (BIT) in 2024.
Since the signing of CEPA, bilateral merchandise trade has nearly doubled from $ 43.3 billion in FY 2020-21 to $ 83.7 billion in 2023-24. In 2024-25 the trade increased 19.6% to $ 100.6 billion with India’s exports at $ 36.7 billion and imports at $ 63.4 billion.