Union Cabinet, chaired by Prime Minister Narendra Modi, approved today the proposal to sign a bilateral Memorandum of Understanding (MoU) on Cooperation in the Field of Industries and Advanced Technologies between India and the United Arab Emirates (UAE).
Growing India-UAE economic and commercial relations contribute to the stability and strength of the two countries' rapidly diversifying and deepening bilateral relationship. India-UAE bilateral trade has increased from USD 180 million (Rs.1373 crore) per year in the 1970s to USD 60 billion (Rs.4.57 lakh crore) in 2019-20, making the UAE India's third-largest trading partner after China and the US.
Furthermore, the UAE is India's second-largest export destination (after the US), with an export value of US$ 29 billion (Rs.2.21 lakh crore) for the fiscal year 2019-2020. With an estimated investment of US$ 18 billion, the UAE is India's eighth largest investor (Rs.1.37 lakh crore). The value of Indian investments in the UAE is estimated to be around US$ 85 billion (Rs.6.48 lakh crore).
On February 18, 2022, India and the UAE signed a bilateral "Comprehensive Economic Partnership Agreement" (CEPA). In the next five years, this agreement has the potential to increase trade between India and the UAE from USD 60 billion (Rs.4.57 lakh crore) to USD 100 billion (Rs.7.63 lakh crore).
The MoU envisions mutually beneficial cooperation in the following areas:
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Strengthening the Supply Chain Resilience of Industries
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Renewable & Energy Efficiency
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Health and life sciences
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Space Systems
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Industry 4.0 Enabling Technologies
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Standardization, metrology, conformity assessment, accreditation, and Halal certification.
The MoU aims to strengthen and develop industries in both countries through investments, technology transfer, and industry deployment of key technologies. This is likely to create jobs throughout the economy.
The implementation of the MoU may result in an increase in research and innovation in all areas of mutual cooperation, particularly renewable energy, artificial intelligence, industry enabling technologies, and health and life science.
This could lead to increased growth in these sectors, increased domestic production, increased exports, and decreased imports. The signing of the MoU will result in the achievement of the goal of Atmanirbhar Bharat, a clarion call issued by the Prime Minister of India to make India self-sufficient.
