The Indian government has approved the signing of the India-UAE Bilateral Investment Treaty (BIT), marking a significant milestone in fostering investment relations between the two countries.
The Union Cabinet, chaired by Prime Minister Narendra Modi, has approved the signing and ratification of the BIT between India and the UAE, according to an official government statement.
The treaty is poised to bolster investor confidence, particularly among key stakeholders, thereby catalysing an influx of foreign capital and creating avenues for Overseas Direct Investment (ODI). It is anticipated that this initiative will have a positive impact on job creation as well.
Since May 2022, the India-UAE Comprehensive Economic Partnership Agreement (CEPA) has significantly expanded the trade volume between the two nations.
The statement further states that the approval is expected to stimulate investments in India and align with the vision of Atmanirbhar Bharat by fostering domestic manufacturing, reducing import dependency, and augmenting exports.
Additionally, the Union Cabinet (UC) extended the Animal Husbandry Infrastructure Development Fund (AHIDF), which will be implemented under the Infrastructure Development Fund (IDF) with an outlay of INR 29,610.25 crore till 2025–26. The UC also decided to prolong the sugar subsidy programme for Antyodya Anna Yojna (AAY) households, which is disbursed via the Public Distribution Scheme (PDS).
