Home Business & Finance India targets US$100 billion foreign investment to speed up economic growth

India targets US$100 billion foreign investment to speed up economic growth


DUBAI: Foreign Direct Investment (FDI) from the UAE in to India is expected to jump manifold this year from US$675 million in 2016-17, with the latest US$1 billion investment by Abu Dhabi Investment Authority (ADIA), officials say.

The UAE is the 10th largest FDI source market for India with cumulative FDI reaching US$4.76 billion in the last 17 years from April 2000 till March 2017.

India’s National Investment and Infrastructure Fund (NIIF) last week signed an investment agreement worth $1 billion with a wholly-owned subsidiary of the ADIA. As part of the agreement, ADIA will become the first institutional investor in NIIF’s Master Fund and a shareholder in National Investment and Infrastructure Limited, the NIIF’s investment management company.

The move is widely seen as part of the US$75 billion investment programme announced by the UAE in August 2015 during a visit by Indian Prime Minister Narendra Modi in Abu Dhabi.

“This marks a new beginning in our bilateral relationship that is going to be more specific and strategic in the years to come where India and the UAE compliments each other on areas of future growth and national security,” Dr Azad Moopen, President of Business Leaders Forum and Founder Chairman of Aster DM Healthcare Group, said. “We, as representative of the private sectors are also getting ready to support the two governments realise their vision and objectives with our own investment initiatives – something that we will announce at the two-day India-UAE Partnership Summit (IUPS).”

India’s Department of Industrial Policy and Promotion (DIPP) recorded US$61 million FDI inflow from the UAE in the April-June quarter this year.

Cumulative FDI flow from the UAE to India from April 2000 till June 2017 reached US$4.76 billion, DIPP said in its latest report.

Invest India, the foreign investment promotion body of India, said it will attract US$100 billion foreign investment in the country, of which US$85 billion has already been committed by 600 large businesses that will create 700,000 jobs, according to recent reports.

“We want to achieve a $100 billion target of foreign investment in the next two years — both greenfield and brownfield,” as per Invest India statement.

FDI inflows into the country grew 8 per cent and touched a new high of $60.08 billion in 2016-17, according to the Department of Industrial Policy and Promotion (DIPP). Cumulative FDI inflow from April 2000 till March 2017 reached US$484.35 billion.

The status of the flow of investment and strategic partnership will further be elaborated at a two-day India-UAE Partnership Summit (IUPS) to be held at the Armani Hotel, Burj Khalifa, from October 30-31, 2017, which will be attended by more than 800 Delegates from India and the UAE, including top government officials, private entrepreneurs and business leaders belonging to Corporate UAE and Corporate India.

Sudesh Aggarwal, Board Member of the BLF, Chairman of the IUPS Organising Committee and Chairman of India Trade and Exhibition Centre (ITEC), says, “The momentum in investment flow from the UAE into India is going to intensify at the two-day India-UAE Partnership Summit where five ministers from India and the UAE will deliver keynote speech in front of more than 800 VIP delegates at the Armani Hotel, where two Indian states will promote the investment packages and incentives for investors to choose from.”

The Summit – with a theme of Investment Implementation – will deliberate about how important projects in India could be financed and executed with the participation of the local business houses of UAE. It will also review the trade and investment relations between the two countries in light of the Joint Statement adopted by the two sides during the visit of H.H. Sheikh Mohammed bin Zayed Al Nahyan in January 2017.

This is the only business conference of its kind to be pro-actively supported by the Government of India through the Embassy of India, Abu Dhabi and Consulate General of India, Dubai as well as the UAE Ministry of Economy. IUPS is also the only such bilateral summit where Ministers of Government of India as well as UAE will be participating.

Ms. Sripriyaa Kumaria, Director-General of ITEC m.e. and the Secretary-General of BLF, “Preparations are in full swing to welcome the delegates at the event that will be graced with the presence of five ministers from the UAE and India as well as participated by two Indian states – Uttar Pradesh and Telengana.”

Sripriyaa Kumaria also mentioned that “Senior Ministers from two Indian states will also participate, the names of which will be announced later. India-UAE Partnership Forum is supported by knowledge partners, KPMG and attracted the interests of the media, including, Gulf News, Times Now and Forbes Middle East.”

UAE and India share age-old ties whose foundation lies in trade and investment. The annual two way trade between the two countries today stands at about US$53 billion and the leadership of the two countries is committed to increase it by 60% over the next 5 years. While India remains the UAE’s top trading partner, the UAE is India’s third largest trading partner – something that the strategic partnership could boost further

Indians companies and Indians are also one of the largest investors in the UAE economy by setting up companies, industries, warehouses and other facilities as well as in real estate. Indians invested Dh20.4 billion into Dubai’s real estate in 18 months from January 2016 till June 2017, according to Dubai Land Department. This is on top of the Dh20 billion invested by Indians in Dubai’s real estate in 2015. As an expatriate national business community, NRIs are also collectively the largest employer group in the private sector.

In the Press Release she also mentioned that “The private sector of India and the UAE, especially the NRI business community has also come forward to support the strategic government-to-government partnership, first by creating a new pan-UAE business entity, the Business Leaders Forum (BLF) in March 2017. BLF, set up under the direct guidance of the UAE Ministry of Economy, Embassy of India and Consulate General of India, is the new umbrella organisation of business leaders in the UAE.”

Business Leaders Forum (BLF) was formally launched in March 2017 and has been set up under the direct guidance of the UAE Ministry of Economy, Embassy of India and Consulate General of India with India Trade & Exhibition Centre (ITEC) acting as the official Secretariat of BLF.

The IUPS is being sponsored by NRI-Emirati Investors Group, NMC, Mulk Holdings, Nikai Group, UAE Exchange, Danube Group, Giant Group of Industries, Zulekha Hospital, and supported by UAE-India Business Council (UIBC), UAE International Investors’ Council (UIIC), Association of Indian Chambers (Assocham), Invest India as well as other stakeholders.

India-UAE Partnership Forum is supported by knowledge partner namely KPMG – the global accounting and auditing firm, Gulf News –The Official Newspaper, Forbes Middle East – The official business magazine & Sony TV and Times Now television channels. News Desk

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