UAE to invest another $25 billion in India, eyes energy bets

The UAE plans to invest another $25 billion in India, while the two countries explore deeper energy cooperation including strategic petroleum reserves, LPG, LNG and subsea gas pipelines amid the West Asia crisis, Commerce and Industry Minister Piyush Goyal said on Monday.

The UAE has already invested $25 billion in India and has indicated another $25 billion of investment in the near future, Goyal said after the 14th India-UAE Investment Task Force meeting in Mumbai. The two countries ultimately aim to take UAE investments in India to $100 billion, he said.

India, UAE explore ‘energy bridges’

The two countries are studying greater UAE investment in strategic petroleum reserves in India, while also exploring the possibility of subsea pipelines to transport and store gas in the country.


“UAE being a trusted partner. We are working with them on building bridges for energy security. And to look at expanding strategic petroleum reserves in India, The studies are going on and we'll be seeing significant ramp up of investments from UAE in this area,” Goyal said.

India is also exploring the UAE as a larger source of LPG and LNG and is studying the possibility of subsea pipelines as part of efforts to strengthen energy resilience and security.

“We are also exploring the possibility of UAE becoming a more important source of LPG, LNG, all the gas that we require, and also a study is going on. to see whether we can also look at subsea pipelines. Underwater ocean pipelines, through which gas can be transported and stored in India for more energy, resilience, and security.”

The discussions come against the backdrop of the Covid-19 pandemic, the Ukraine war and the ongoing West Asia crisis, Goyal said.

India-UAE trade target at $200 billion

India and the UAE have doubled bilateral trade to $100 billion and have set a target of taking it to $200 billion by 2032, Goyal said.

The Comprehensive Economic Partnership Agreement between the two countries is now four years old. Goyal said the UAE has indicated another $25 billion of investment in India, with a longer-term objective of taking UAE investments to $100 billion.

“The UAE believes in India, and is one of our largest foreign direct investment source of capital. They have already invested $25 billion, and is the seventh largest social FDI source. They have also given intent to invest another $25 billion in the near future, that the ultimate objective of taking investments from UA to $100 billion in the years to come.”

Local currency settlement growing

Goyal said local currency settlement between India and the UAE is increasing and is currently in double digits.

“Local currency settlement between India-UAE is slowly growing. At this stage it is in double digits, we expect is to grow further at a rapid pace,” he said.

He also highlighted the speed at which India and the UAE negotiated their trade agreement.

“UAE FTA set a new benchmark and a landmark in the world as the fastest ever negotiated free trade agreement. We had launched and concluded in less than 90 days-- signed, sealed, and delivered. So it was really a success story.”

Goyal said trade between the two countries was also moving back towards pre-war levels.

“I'm happy to share with you that the trade on both sides between UAE and India is coming back to the pre war levels. We are very close to it, another few months, and we should get back and beyond the pre war levels.”

India targets $1 trillion exports

Goyal said India is targeting $1 trillion in exports of goods and services this year after recording $863 billion in exports last year.

“India is now emerging out of the shadows of the past and becoming a continued to global trade in a bigger way. We last year did a record $863 billion of export of goods and services. This year, we have kept the most ambitious target ever. in India's history and possibly the most ambitious target in any other part of the world. to increase our exports from $863 billion to $1 trillion.”

Merchandise exports have grown by more than 15% in the first six months of the year up to September 21, Goyal said.

“I'm happy to share with you. that up to 21st September, the last data that I have with me, we have increased our exports, merchandise exports, by upward of 15%. in the first six months of the year, up to 21st September, more than 15% growth in merchandise exports.”

The two countries are also looking to expand cooperation in areas including energy security, logistics, AI and other emerging technologies as their trade and investment relationship grows.