Source-This post on India-UAE Bilateral investment Treaty is based on the article “Govt signs bilateral investment treaty with UAE to promote investments” published in “Business Standard” on 13th February 2024.
Why in the News?
Recently, India and the United Arab Emirates (UAE) signed a significant bilateral investment treaty during Prime Minister Narendra Modi’s two-day visit. Several other key agreements were also signed.
What is the significance of this Bilateral investment treaty (BIT)?
1. The goal of the BIT is to enhance investor trust, especially among significant investors. It can result in higher levels of foreign investments and more opportunities for overseas direct investment (ODI). It is expected to have a positive effect on job creation as well.
2. In addition to boosting investments in India, the BIT with the UAE is expected to support the goal of Atmanirbhar Bharat by promoting domestic manufacturing, reducing reliance on imports, and boosting exports.
What are the other key agreements signed?
1. Digital infrastructure projects– To establish a framework for broad cooperation, including investment collaboration, in the digital infrastructure sector. It also facilitates the exchange of technical knowledge, skills, and expertise.
2. Linkage of payment platforms– The two countries also agreed to connect India’s UPI with the UAE’s AANI instant payments platform. Similarly, India’s RuPay cards will also be linked with the UAE’s JAYWAN card, built on RuPay’s technology stack.
3. India-Middle East Economic Corridor (IMEC) framework agreement– Both sides also inked an Intergovernmental Framework Agreement on the India-Middle East Economic Corridor (IMEC).
a. The IMEC initiative proposes a sea-land connectivity project connecting India with West Asia and Europe.
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