The Ministry of Investment in the UAE signed 3 memorandums of understanding with the Republic of India, to advance the prospects for bilateral investment cooperation and enhance its paths within the sectors of renewable energy, food processing, and health care.
The signing of the memorandums of understanding by the relevant ministries in the Republic of India confirms the UAE’s firm commitment to supporting the sustainable development of the thriving economy in the Republic of India, which is expected to witness significant growth estimated at 7.3% during the current fiscal year.
Economic cooperation between the UAE and the Republic of India is enjoying significant and rapid growth in its multiple sectors and fields, thanks to the Comprehensive Economic Partnership Agreement (CEPA) between the two countries, which entered into force during May 2022, as the volume of bilateral trade between the UAE and India reached 84.5 billion. dollars during the period from April 2022 to March 2023, and the volume of mutual trade is expected to rise to $100 billion by 2027.
The UAE is also the seventh largest investor in the Republic of India, with investments estimated at approximately $18 billion in 2023.
The three memorandums of understanding were signed between the Ministry of Investment in the UAE and the following: the Ministry of New and Renewable Energy in the Republic of India, regarding investment cooperation within the renewable energy sector, the Ministry of Food Industries in the Republic of India, regarding investment cooperation in the field of developing food manufacturing complexes, and the Ministry of Health and Family Welfare in the Republic of India. India, on investment cooperation in the field of innovative healthcare projects.
Under the memorandum of understanding for investment cooperation in the renewable energy sector signed by His Excellency Mohammed Hassan Al Suwaidi, Minister of Investment, and His Excellency Dr. Subramaniam Jai Shankar, Minister of External Affairs of the Republic of India, on behalf of the Ministry of New and Renewable Energy, investment cooperation in the field of developing energy projects may reach Renewable capacity scheduled to be implemented in the Republic of India, to 60 GW. The Republic of India supports global efforts to confront climate change, and the approach to switching to clean energy represents a national priority for it, as it aims to achieve climate neutrality by the year 2070, and to meet 50% of its electricity needs from renewable energy sources by the year 2030, and therefore it has developed plans to increase its production capabilities. Renewable energy capacity to about 500 gigawatts, reducing the emissions intensity of its economy by 45%, and reducing 1 billion tons of carbon dioxide.
Government estimates in the Republic of India indicate that its transition to a low-carbon path will require new investments worth more than $10 trillion by 2070.
The memorandum of understanding between the UAE and the Republic of India focuses on enhancing effective cooperation, by building solid relationships between institutions in the government and private sectors, while providing competitive incentives that support joint initiatives in this field, and enhance the exchange of experiences and knowledge.
As for the Memorandum of Understanding for investment cooperation in the field of developing food complexes, which was signed by His Excellency Mohammed Hassan Al Suwaidi, Minister of Investment, and His Excellency Pashupati Kumar Paras, Minister of Food Industries of the Republic of India, according to which the two parties commit to developing food complex projects and implementing other initiatives in the food processing sector, which contributes to enhancing Global food security, and harnessing the latest agricultural technology solutions, clean technology and renewable energy, which reflects the importance of this partnership between the UAE and the Republic of India.
The memorandum of understanding focuses on forming the foundations for effective cooperation by building relationships between government and private institutions in the UAE and the Republic of India. The memorandum also proposes providing incentives to support relevant initiatives, with the aim of enhancing the exchange of experiences and knowledge.
The food processing sector is a thriving sector in the Republic of India, and has received significant support through the Mega Food Park programme, a government initiative launched in 2008 with the aim of providing modern food processing infrastructure throughout the value chain.
The program provides financial support to government and private agencies to establish complexes consisting of food processing units, known as “food parks,” that bring farmers, manufacturers, and retailers together and use advanced technology to reduce waste, conserve water, and increase crop productivity.
There are currently 24 mega food complexes in India, along with many other complexes in various stages of construction.
The food manufacturing sector in India is one of the largest sectors in the world, with an average annual growth rate of 8.3% over the past five years. The sector’s production is expected to reach $535 billion by 2025/2026, and this sector will have a vital role in developing the economy of the Republic of India. in general.
As for the memorandum of understanding for investment cooperation in innovative health care projects, which was signed by His Excellency Mohammed Hassan Al Suwaidi, Minister of Investment, and His Excellency Dr. Mansukh Mandaviya, Minister of Health and Family Welfare of the Republic of India, it focuses in particular on the accuracy of health care services, which is concerned with providing specialized health care services. Based on a person's unique genetic, genomic or biological makeup, to help achieve optimal well-being and health.
The development of a Genomics Center of Excellence is currently being evaluated as one of the potential projects under the MoU. Rising income levels, increased employment opportunities, access to international markets and rapid technological advancement have fueled the growth of this sector.
As the most populous country in the world, the Republic of India has paid great attention to low-cost, accessible and increasingly innovative healthcare, thanks to increasing public health spending, year after year.
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