India and the United Arab Emirates (UAE) have reached a significant milestone in their economic relations with the signing of the Bilateral Investment Treaty (BIT). This pivotal agreement, witnessed by Prime Minister Narendra Modi of India and UAE’s President Sheikh Mohamed bin Zayed Al Nahyan, is set to play a crucial role in enhancing investment opportunities between the two nations.
According to a statement from India’s Ministry of External Affairs, the BIT is expected to be a major driver in promoting investments in both countries. This treaty complements the existing economic ties, as India has already established both a Bilateral Investment Treaty and a Comprehensive Economic Partnership Agreement with the UAE.
Earlier in the month, the Union Cabinet in New Delhi approved the signing and ratification of the BIT with the UAE. The primary aim of this treaty is to boost investor confidence, particularly among significant investors, leading to an increase in foreign investments and opportunities for overseas direct investment (ODI). It is anticipated that the BIT will not only enhance foreign investment flows but also positively impact job creation.
The BIT’s benefits extend beyond attracting investments into India; it is also expected to support the Indian government’s initiative of ‘Atmanirbhar Bharat’ (Self-Reliant India). By fostering domestic manufacturing, reducing dependency on imports, and boosting exports, the treaty aligns with India’s broader economic objectives. This alignment was highlighted in an official release prior to the signing.
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