Union Minister Anurag Thakur briefs the media on Cabinet decisions at National Media Centre, in New Delhi. File
| Photo Credit: PTI
The Union Cabinet on February 1 approved an investment treaty with the United Arab Emirates (U.A.E.) that is likely to significantly boost bilateral economic engagement in a range of areas, including manufacturing and foreign direct investment (FDI).
The Union Government also approved the signing and ratification of a Bilateral Investment Treaty (BIT) between India and the United Arab Emirates (U.A.E.).
The treaty is expected to improve the confidence of investors, especially large investors, resulting in an increase in foreign investments and overseas direct investment opportunities, the government said.
The pact may have a positive impact on employment generation, it said in a statement. The pact would help promote investments between the two countries.
“The Union Cabinet chaired by Prime Minister Narendra Modi today has given its approval for signing and ratification of the bilateral investment treaty between the government of India and the government of the United Arab Emirates,” it said.
“The approval is expected to increase investments in India and is likely to help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc.,” it said.
The two nations have also implemented a free trade agreement in May 2022. India received an FDI of $16.7 billion between April 2000 and September 2023.