UAE to invest $75bn in India, partner on clean energy

The UAE government has announced its plans to invest US$75 billion in sovereign funds in India. The partners have an aligned vision for clean energy and are committed to partnering and leveraging their varying capabilities towards the manufacturing of equipment for solar power, commerce minister Piyush Goyal said in Dubai on Saturday.

Announcing this during a press briefing on the second day of Expo 2020 Dubai, Goyal noted that the decision to engage the UAE was driven by oneness of vision. He also described his interactions with businessmen and investors from the UAE during the Expo on Friday as being “truly fabulous”.

“There is a commitment from the rulers of the UAE to invest $75 billion from their sovereign funds in India. This is over and above what other businesspersons in the UAE may want to invest,” he said.

HT revealed in a report dated May 25 that more than 15 sovereign wealth funds (SWFs) and pension funds desired some form of tax benefits for providing financing to major Indian infrastructure projects through the ₹111 lakh crore National Infrastructure Pipeline (NIP).

Later in the day, at the ninth meeting of a joint task force on investments, the two countries deliberated on their plans to jointly explore mutually-beneficial methods. They also discussed the possible incentives that may encourage more investment from UAE sovereign investment entities in some key sectors in India, a publication from the commerce ministry revealed.

The meeting was co-chaired by Goyal and Sheikh Hamed bin Zayed Al Nahyan, member of the executive council of the Emirate of Abu Dhabi. “The positive steps made by the Indian government in this context were noted and both sides agreed to continue to focus on ways of providing tax incentives to certain UAE sovereign investment entities,” the statement added.