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India and UAE to Build New and Strong Bonds in the Advanced Technology and Industrial Sectors

    11 June , 2022         Fdiindia

India and UAE to Build New and Strong Bonds in the Advanced Technology and Industrial Sectors

Recently the MoU between India and the United Arab Emirates has been signed that entails their cooperation in the Industrial and Advanced Technology Sector. Taking into consideration that India and UAE already have good relations and corporate with each other on various cultural, religious and economic fronts and hence this MoU surely represents that in future these bonds will be more strong.

Economic and commercial interactions between India and the UAE contribute to the stability and strength of the two nations' increasingly expanding and developing bilateral relations. Bilateral trade has grown from $180 million (Rs.1,373 crore) a year in the 1970s to more than $60 billion (Rs.4.57 lakh crore) now, making the UAE India's third-largest trading partner after China and the United States.

Moreover, the UAE is the second-largest export destination of India (after the US) with an export value of $29 billion (Rs.2.21 lakh crore). The UAE is the eighth largest investor in India with an estimated investment of $18 billion (Rs.1.37 lakh crore). Indian investments in various sectors are around $85 billion (Rs.6.48 lakh crore).

The MoU envisions cooperative endeavours in the following areas — supply chain resilience, renewable energy usage, health and life sciences, space exploration, artificial intelligence, promoting future industry 4.0 technologies (including robotics and automation), standardization, metrology standards, conformity assessment certification centres or testing/validation from accredited agencies and area of expertise depending on applicable need and availability.

The Memorandum of Understanding also seeks to strengthen and develop both countries' economies through investments, technology transfer, and the deployment of key technologies in various industries. This will lead to economic growth for all parties involved and create jobs across the board.

The MoU will assist both the partner nations with better research and development capabilities, which in turn will lead to a thriving technology industry that is consistent and capable of creating more domestic goods. By enhancing their ability to work with technologies across industries, the nations involved not only get to collaborate much more easily but are also able to produce goods that can be sold internationally as well.

The UAE is a key investor in India, with an estimated $17-18 billion of investment in the country. Of this investment, $11.67 billion is FDI while the remaining is considered portfolio investment. The UAE is one of India's nine biggest investors when it comes to FDI.


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