Abu Dhabi Investment Authority Looks for Investment Opportunities in India AIDA and Indian Government to form Joint Working Group to Finalize Projects.

Press Information Bureau

Government of India

Ministry of Commerce & Industry

16-January-2012 16:44 IST

Abu Dhabi Investment Authority Looks for Investment Opportunities in India AIDA and Indian Government to form Joint Working Group to Finalize Projects

Abu Dhabi Investment Authority (ADIA) one of the World’s largest Sovereign wealth fund has expressed keen interest in investing in India. Sheikh Hamed bin Zayed Al Nahyan, Managing Director of ADIA met the Minister of Commerce Industry and Textiles Shri Anand Sharma to discuss the opportunities of investment in India. Both side agreed to finalize a Joint Working Group to expedite the process. “We will be very happy to see your participation in India’s infrastructure building” said Shri Sharma. “This is an opportunity to enter this huge market” said Sheikh Hamed bin Zayed Al Nahyan.

Shri Sharma mentioned that India will be investing US$ 1 trillion in infrastructure over the next 5 years and huge opportunities exist which include investment along the Delhi Mumbai Industrial Corridor. Returns on infrastructure in India are amongst the highest in the world. The DMIC projects , which are being de-risked before bidding by obtaining all necessary regulatory approvals, might appeal to ADIA for investments as such investments are likely to be profitable. Besides, the huge pent up demand for infrastructure in India makes most PPP projects viable and thus offers huge opportunities for investments.

Keeping in mind the worsening investment climate in developed nations both the leader agreed that UAE and India should engage more. Shri Sharma emphasized need to diversify the investment portfolio and proposed that 3-4 new areas must be identified for closer interaction. Minister said that Pharma, Service Sector and engineering along with agro-processing can be the potential areas. AIDA asked for more support for their explorations of opportunities in Indian market. Shri Sharma also stressed the need for UAE to encourage other members of Gulf Cooperation Council(GCC) for early holding of 3rd round of negotiations on proposed Free Trade Agreement between India and GCC to be held in New Delhi.

UAE is the topmost trading partner of India in the entire West Asia & North Africa (WANA) Region representing about 63% of India’s total trade with GCC countries 2010-11. Bilateral trade has registered an increase over 300% in the last five years. The total trade in 2010 has been US$ 60.357 billion. The exports from India have been US$ 29.456 and imports have been US$ 30.9 billion. Bilateral trade between January to November 2011 has been US $ 66.564 billion. The bilateral trade does not reflect the full potential and can be further exploited to mutual advantage of both the countries, felt the two leaders.

DS/gk