The Union Cabinet chaired by the Prime Minister, Narendra Modi, today has approved the proposal for signing a bilateral Memorandum of Understanding (MoU) between India and the United Arab Emirates (UAE) on Cooperation in the field of Industries and Advanced Technologies.
Growing India-UAE economic and commercial relations contribute to the stability and strength of a rapid diversifying and deepening bilateral relationship between the two countries. India-UAE bilateral trade, valued at US$ 180 million (Rs.1373 crore) per annum in the 1970s has increased to US$ 60 billion (Rs.4.57 lakh crore) making the UAE, India’s third largest trading partner for the year 2019-20 after China and the US. Moreover, the UAE is the second largest export destination of India (after US) with an export value of US$ 29 billion (Rs.2.21 lakh crore) for the year 2019-2020. The UAE is eighth largest investor in India with an estimated investment of US$ 18 billion (Rs.1.37 lakh crore). Indian investments in the UAE are estimated at around US$ 85 billion (Rs.6.48 lakh crore).
India and the UAE have signed a bilateral “Comprehensive Economic Partnership Agreement” (CEPA) on 18/02/2022. This agreement has potential to increase trade between India and the UAE from US$ 60 billion (Rs.4.57 lakh crore) to US$ 100 billion (Rs.7.63 lakh crore) in the next five years.
The MoU envisages cooperation on a mutually beneficial basis in the following areas:
- Strengthening the Supply Chain Resilience of Industries
- Renewable & Energy Efficiency
- Health and life sciences
- Space Systems
- Artificial Intelligence
- Industry 4.0 Enabling Technologies
- Standardization, metrology, conformity assessment, accreditation, and Halal certification.
The MoU aims at strengthening and developing industries in both nations through investments, technology transfer and the deployment of key technologies in industries. This is likely to generate employment across the economy.
The implementation of MoU may lead to increase in research and innovation in all areas of mutual cooperation, particularly in the areas of Renewable Energy, Artificial Intelligence, Industry Enabling technologies and Health and Life science. This may lead to growth of these sectors, increased domestic production, enhanced exports and reduction in imports.
Signing of the MoU will result in fulfilling the goal of Atmanirbhar Bharat, a clarion call given by Hon’ble Prime Minister of India in making India a self-reliant nation.