PM Modi, UAE honchos decide to raise up to $75 billion for infrastructure fund
NEW DELHI: India and the United Arab Emirates on Monday decided to set up a multi-billion dollar fund to tap into investment opportunities in the country’s infrastructure sector.
The fund plans to raise up to $75 billion to support investment in India’s rapid expansion of next generation infrastructure, particularly in railways, ports, roads, airports, industrial corridors and parks, an official statement said. No details were available about the timeframe for raising the money or the investment plans.
Prime Minister Narendra Modi had urged UAE’s top businessmen to invest in India and had offered $1 trillion investment opportunity. India has been discussing with several global funds to invest in the country and develop the infrastructure sector.
The Abu Dhabi Investment Authority (ADIA), one of the world’s largest sovereign wealth funds, has been keen to invest in India’s infrastructure sector and build a strategic partnership with New Delhi. ADIA is already an investor in India and sees India as an attractive investment destination. India has huge needs for investment in railways, roads, ports, industrial corridors and smart cities.
The two sides also decided to facilitate participation of Indian companies in infrastructure development in the UAE and promote strategic partnership in the energy sector, including through the UAE’s participation in India in the development of strategic petroleum reserves, upstream and downstream petroleum sectors, and collaboration in third countries.
The two countries also decided to further promote trade and use their respective locations and infrastructure for expanding trade in the region and beyond; and, with the target of increasing trade by 60% in the next five years.
The UAE will also tap into India’s expertise in small and medium enterprises to create a vibrant industrial base in the Emirates which could also be of benefit to Indian enterprises.
The two sides also decided to strengthen cooperation between the UAE’s educational institutions and India’s universities and higher research institutions. It was decided to promote scientific collaboration, including in the areas of renewable energy, sustainable development, arid agriculture, desert ecology, urban development and advanced healthcare.