The Union Cabinet, chaired by Prime Minister Narendra Modi, on Thursday gave its approval for signing and ratification of a bilateral investment treaty between India and the United Arab Emirates.
The treaty is expected to improve the confidence of the investors, especially large investors, resulting in an increase in foreign investments and overseas direct investment (ODI) opportunities and this may have a positive impact on employment generation.
The approval is expected to increase investments in India and is likely to help in realising the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc, an official press note said.
India and the United Arab Emirates (UAE) already have a Comprehensive Economic Partnership Agreement (CEPA) between them since May 2022 which has substantially increased the trade volume between the two countries.