“UAE and India Ink Agreements to Foster Investment Cooperation Across Diverse Sectors”

Abu Dhabi: The UAE Ministry of Investment has inked three Memorandums of Understanding (MoUs) with India, outlining frameworks for the expansion of bilateral investment cooperation in the renewable energy, food processing, and healthcare sectors.

These agreements, endorsed by the respective Indian ministries, underscore the UAE’s unwavering commitment to bolstering the continued development of India’s thriving economy, projected to grow by 7.3% in the current fiscal year. The multifaceted economic engagement between the UAE and India has experienced rapid growth, supported by the Comprehensive Economic Partnership Agreement (CEPA) effective since May 2022. Bilateral trade between the UAE and India totaled US$ 84.5 billion from April 2022 to March 2023, with expectations to reach US$ 100 billion by 2027.

The UAE stands as the seventh-largest investor in India, with an estimated investment of US$ 18 billion in 2023.

The three MoUs are between the UAE Ministry of Investment and:

• The Ministry of New and Renewable Energy of the Republic of India, focusing on investment cooperation in the renewable energy sector.
• The Ministry of Food Processing Industries of the Republic of India, concentrating on investment cooperation in food park development.
• The Ministry of Health and Family Welfare of the Republic of India, emphasizing investment cooperation in innovative healthcare projects.

MoU on investment cooperation in the renewable energy sector:
The agreement on renewable energy was signed by Mohamed Hassan Al Suwaidi, UAE Minister of Investment, and Dr. Subrahmanyam Jaishankar, External Affairs Minister of India, on behalf of the Ministry of New and Renewable Energy. Investment cooperation in renewable energy projects, under the agreement, could reach up to 60 gigawatts.

India’s commitment to achieving net-zero emissions by 2070 and fulfilling 50% of its electricity requirements from renewable energy sources by 2030 aligns with global efforts to combat climate change. The Indian government anticipates requiring over US$ 10 trillion in new investments by 2070 for this low-carbon transition. The MoU emphasizes effective collaboration, building relationships between public and private organizations, and proposes implementing incentives to support relevant initiatives while facilitating knowledge exchange.

MoU on investment cooperation in food park development:
The agreement for investment cooperation in food park development was signed by Mohamed Hassan Al Suwaidi, UAE Minister of Investment, and Pashupati Kumar Paras, Minister of Food Processing Industries of India. The commitment focuses on developing food park projects and initiatives in the food processing sector to contribute to global food security, incorporating cutting-edge agritech, clean tech, and renewable energy solutions. The MoU aims to establish robust collaboration through bilateral relationships between public and private organizations, introducing incentives to support initiatives and facilitating knowledge exchange.

India’s food processing sector, considered a “sunrise sector,” is propelled by the Mega Food Park Scheme, launched in 2008, supporting the establishment of food processing clusters known as “food parks.” With 24 operational mega food parks and more in various stages of implementation, India’s food processing industry has experienced an average annual growth rate of 8.3% in the past five years, with anticipated output reaching US$ 535 billion by 2025/2026.

MoU on investment cooperation in innovative healthcare projects:
The agreement on investment cooperation in innovative healthcare projects was signed by Mohamed Hassan Al Suwaidi, UAE Minister of Investment, and Dr. Mansukh Mandaviya, Minister of Health and Family Welfare of India. The MoU places special emphasis on precision health, focusing on personalized healthcare based on an individual’s unique genetic, genomic, or biological composition to achieve well-being and optimal health. Evaluation for the development of a genomic center of excellence is underway.

India’s healthcare sector, estimated at around US$ 372 billion, has witnessed accelerated growth due to factors such as affordable treatment, advanced technology, a diverse range of specialties, and access to international markets. As the world’s most populous country, India has prioritized affordable, accessible, and increasingly innovative healthcare, supported by increased public health expenditure year-on-year.