Indian Minister declares sectors open to Arab investment

The Indian government has taken a significant stride in opening up its most investable sectors to Arab investors, allowing 100 percent share ownership under the automatic route. Dr. Rajkumar Ranjan Singh, India’s Minister of State for External Affairs, made the announcement, signaling a welcoming environment for businessmen and firms in the Arab region to explore investment opportunities in India.

Under the automatic route, entities outside India can now invest in the country without the need for prior government approval, as reported by Emirates News Agency on Monday.

Addressing concerns on regulatory barriers and emphasizing India’s commitment to attracting global investments from Arab countries, Minister Singh expressed that the Indian government continues to expand opportunities for international investors.

In response to a question raised by MP Rajendra Dhedya Gavit, Singh outlined various government-to-government and business-to-government mechanisms that have been established for the Middle East region. These mechanisms include a High-Level Task Force on Investment with the UAE, a Strategic Partnership Council with Saudi Arabia, and the India-Israel CEO Forum.

Furthermore, Singh emphasized that India maintains extensive ties with Middle East countries across a wide range of sectors, including trade and investments. Notably, frequent high-level business engagements and events like the India-Arab Partnership Conference, recently held in New Delhi, have contributed to strengthening economic ties between India and the Arab nations.

Highlighting the substantial investments from Middle East sovereign wealth funds, Singh stated that key sectors such as food, energy, financial services, health, education, information technology, renewable energy, and infrastructure have received significant funding from the region.

With this move, India aims to facilitate increased foreign direct investment and foster stronger economic partnerships with Arab investors. The opening up of critical sectors through the automatic route signals India’s determination to create a conducive environment for foreign investors, promoting growth and collaboration in key areas of the economy. As the nation continues to prioritize strategic partnerships with the Arab region, the prospect of further economic integration and collaboration between India and Arab nations appears promising.

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