India and the United Arab Emirates (UAE) are advancing plans for a food corridor between the two nations, with an initial investment of approximately $2 billion (about Rs 17,000 crore) in food processing and logistics for food parks. This initiative aims to strengthen the UAE’s food security while benefiting Indian farmers, said Piyush Goyal, union minister of commerce and industry, at the 12th High-Level Task Force on Investments (HLTFI) press conference in Mumbai. The project is part of a broader investment strategy targeting $100 billion across key sectors, including infrastructure, manufacturing, and logistics.
“The investment comes through two mediums. One is directly from the UAE, which is in the region of about $20 billion, but they are also co-investing through several other funds across the world,” said Goyal.
A working group consisting of the central government, state governments involved, and the UAE has been formed to expedite the project, which is expected to increase farmer incomes and create jobs for India’s youth in food processing, according to Goyal. The initiative is also seen as vital for securing a stable supply of agricultural products to the UAE and the Gulf region.
The UAE’s investments into India are expected to increase as the bilateral investment treaty (BIT), signed in August, takes effect. The Union minister emphasised the complementary nature of the Comprehensive Economic Partnership Agreement (CEPA) and the BIT, which together are set to provide duty-free market access and a predictable investment environment for UAE businesses.
A milestone in the partnership is the establishment of Invest India offices in both nations. Goyal announced that the UAE will provide a location free of cost for the Invest India office in Dubai, which will focus on promoting investment, trade, and technology. In return, India will offer space for the UAE’s counterpart office in New Delhi. These offices will streamline investment processes, serving as a single window for approvals and information, and are expected to boost economic cooperation between the two countries.
As part of the growing collaboration, Goyal also announced that the Indian Institute of Foreign Trade (IIFT) will establish its first campus overseas, in the UAE. The campus will offer courses at the former Dubai Expo Pavilion, now retained by India. This follows the Indian Institute of Technology’s campus launch in Abu Dhabi last year.
First Published: Oct 07 2024 | 7:12 PM IST
