UAE-India Infra Fund to target $75 bn: Modi
While targeting to boost trade by 60% in five years, India and UAE to cooperate on defence, space and strategic oil reserves
New Delhi: Offering an investment opportunity of $1 trillion, India and United Arab Emirates on Monday decided to set up a UAE-India Infrastructure Investment Fund to channelise $75 billion investment in India's railways, ports, roads, airports and industrial corridors.
Marking his historic visit to UAE, Prime Minister Narendra Modi sought to enhance economic engagement with the Gulf nations to boost trade and investment.
"The visit of an Indian Prime Minister to UAE after 34 years marks the beginning of a new and comprehensive strategic partnership between India and UAE in a world of multiple transitions and changing opportunities and challenges," the joint statement by Modi UAE's Crown Prince Mohamed Bin Zayed AI Nahyan.
The UAE-India Infrastructure Investment Fund aims to channel $75 billion investment in India's next generation infrastructure especially in railways, ports, roads, airports and industrial corridors and parks, it said.
UAE will also facilitate participation of Indian companies in infrastructure development in that country.
The two countries also decide to promote strategic partnership in the energy sector, including through UAE's participation in India in the development of strategic petroleum reserves, upstream and downstream petroleum sectors, and collaboration in third countries.
India and UAE will promote trade between the two countries and use their respective locations and infrastructure for expanding trade in the region and beyond and, with the target of increasing trade by 60 per cent in the next five years.
India and UAE will also promote cooperation in space including in joint development and launch of satellites, ground-based infrastructure and space application. Modi welcomed UAE's plan to set up the West Asia's first Space Research Centre at AI Ain and plans to launch a Mars Mission in 2021.
Cooperate in peaceful uses of nuclear energy including in areas like safety, health, agriculture and science and technology.
Earlier, Modi wooed gulf-based investors saying India offers $1 trillion investment opportunity in infrastructure and financial sector and sought closer economic engagement with United Arab Emirates.
Asserting that India now has a decisive government with full majority, Modi said several sectors including insurance, railways, defence manufacturing has been opened up for foreign investment.
Speaking to Gulf investors, Modi pointed to huge potential in India's renewable energy, port and low-cost housing sectors.
Citing IMF and World Bank assessments, he said India was now the fastest growing major economy in the world with immense possibilities of development.
After taking charge last year, Modi has announced a series of steps including Make in India, Digital India, Clean India, 24x7 power to all, solar mission and Rs 1 trillion crore housing for all and Smart City mission to revive growth in Asia's third largest economy.
India's GDP growth is projected to grow by 8.1-8.5 per cent during FY16 from 7.3 per cent in FY15, making it among the fastest growing emerging economy surpassing even China.