Abu Dhabi: The UAE Ministry of Investment has signed three Memorandums of Understanding (MoU) with India, establishing frameworks for the expansion of bilateral investment cooperation in the renewable energy, food processing and healthcare sectors.
The agreements were signed by the respective Indian ministries, underlining the UAE’s strong commitment to supporting the continued development of India’s thriving economy, which is estimated to grow by 7.3 per cent during the current fiscal year.
The economic engagement between the UAE and India is multidimensional and growing rapidly, supported by a Comprehensive Economic Partnership Agreement (CEPA) between the two nations that came into force in May 2022. Bilateral trade between the UAE and India amounted to $84.5 billion between April. 2022 and March 2023 and is expected to increase to $100 billion by 2027.
The UAE is also the seventh largest investor in India, with an estimated investment of $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 on investment cooperation in the renewable energy sector;
– The Ministry of Food Processing Industries of the Republic of India on investment cooperation in the development of food parks;
– The Ministry of Health and Family Welfare of the Republic of India on cooperation in investments in innovative health 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, Minister of External Affairs of India, representing the Ministry of New and Renewable Energy.
Cooperation in investments in renewable energy projects to be implemented in India under the agreement can reach up to 60 gigawatts.
In support of global efforts to address climate change, a clean energy transition is a priority for India. The country aims to achieve net zero emissions by 2070 and meet 50 percent of its electricity needs from renewable energy sources by 2030. As a result, there are plans to increase India’s renewable energy capacity to 500 gigawatts and reduce the emissions intensity of its economy. by 45 percent and reduce one billion tons of carbon dioxide. The Indian government estimates that the country’s shift to a low-carbon path will require more than $10 trillion in new investments by 2070.
The MoU between the UAE and India focuses on forging effective collaboration by building relationships between public and private organizations. The agreement further proposes the implementation of incentives to support relevant initiatives and aims to facilitate knowledge sharing.
Memorandum of Understanding on Investment Cooperation in the Development of Food Parks
The investment cooperation agreement in the development of food parks was signed by Mohamed Hassan Al Suwaidi, Minister of Investment of the UAE; and Pashupati Kumar Paras, Minister of Food Processing Industries of India
Under the agreement, the parties commit to developing food park projects and promoting other initiatives in the food processing sector that contribute to global food security. The investment cooperation aims to leverage cutting-edge renewable energy, cleantech and agricultural technology solutions, symbolizing a meaningful partnership between the UAE and India.
The MoU focuses on establishing strong and efficient collaboration through the development of bilateral relationships between public and private organizations. The agreement also proposes introducing incentives to promote relevant initiatives and seeks to facilitate the exchange of knowledge.
Food processing is considered an “emerging sector” in India, boosted by the Mega Food Parks Plan, a key government initiative launched in 2008 aimed at providing modern infrastructure facilities for food processing across the food chain. worth.
The Plan provides financial support to public and private entities to establish clusters of food processing units, known as “food parks”, which bring together farmers, processors and retailers and use advanced climate technology to minimize waste, conserve water and maximize crop yields. . India currently has 24 operational mega food parks, with many others at various stages of implementation.
India’s food processing sector is one of the largest in the world and has developed at an average annual growth rate of 8.3 percent over the past five years. The sector’s output is expected to reach $535 billion in 2025/2026. The industry is expected to play a vital role in the overall growth of the country’s economy.
MoU on cooperation in investments in innovative healthcare projects
The cooperation agreement on investment in innovative healthcare projects was signed by Mohamed Hassan Al Suwaidi, Minister of Investment of the UAE; and Dr. Mansukh Mandaviya, Minister of Health and Family Welfare of India.
The MoU places special emphasis on precision health, that is, personalized healthcare based on a person’s unique genetic, genomic or biological makeup to help achieve optimal health and well-being. The development of a genomic center of excellence is being evaluated as one of the possible projects under the MoU.
The healthcare sector in India is estimated to be around $372 billion. Factors such as affordable treatment, advanced technology, a wide range of specialties and access to international markets have accelerated the growth of this industry.
As the world’s most populous country, India has made affordable, accessible and increasingly innovative healthcare a priority, facilitated by increasing public health spending year on year.