India, UAE set up a high-level joint task force on investment

New Delhi, May 18 (PTI) Under pressure from the US to cut its oil imports from Iran, India has decided to set up a high-level joint task force on investment which will also look into securing more oil supplies from UAE that has assured it of "increased" energy exports. India's External Affairs minister S M Krishna and his counterpart from UAE Sheikh Abdullah bin Zayed Al Nahyan today held wide-ranging discussions on international, regional and bilateral issues including ways to boost trade ties, maritime security cooperation to tackle piracy and Indo-Pak ties. Underlining the country's need to increase its oil imports, Krishna, at a joint press conference, said, "The need to increase import of oil and other energy sources is of extreme critical importance and in UAE we have a dependable supplier which India needs so badly." On its part, the UAE minister assured New Delhi that his country, which is one of the largest suppliers of crude oil, saying "would like to see more UAE energy exports to India especially when it comes to crude oil .... There are talks between our officials looking at these avenues and even further. We would like to see UAE presence in downstream investments in India, including petrochemicals." As part of efforts to reduce its dependence on Iranian crude, India has been diversifying its energy sources and exploring possibilities of increasing its supplies from the existing partner countries. Sheikh Hamad bin Zayed al Nahyan, the Managing Director of the Abu Dhabi Investment Authority and Commerce, Industries and Textiles Minister Anand Sharma will be leading the respective sides of the High Level Task Force, Krishna said. Noting that the United Arab Emirates’ leadership is now keen to address the issue of investments to bring it on par with the multi-faceted relations the two countries enjoy in all other sectors, Krishna said the 'High Level Joint Task Force' will explore further opportunities in investments. Besides oil, UAE is also looking at investment opportunities in sectors like petrochemicals. Abu Dhabi Investment Authority (ADIA), one of the world's biggest sovereign wealth funds, is looking at investment opportunities in India, particularly in the real estate sector. ADIA's investments in Indian real estate is around USD 500 million, largely through property and private equity funds, reports said, adding the fund is now scouting for direct investment opportunities. India enjoys close and multifaceted relations with UAE and during the last three years, the two countries were each other's largest trading partners. Bilateral trade during 2011-12 was USD 67 billion. UAE contributes significantly to India's energy security and also hosts an Indian community of 1.75 million, the largest expatriate community in the country. UAE was the fifth largest import source of crude oil for India in 2010-11 with import of 14.20 MMT. Among other issues that figured in talks, included situation in West Asia, Iran's nuclear programme, Afghanistan and Indo-Pak relations. The UAE minister also said that he was "pleased" to see the developing "vibrant" Indo-Pak ties. The UAE Minister, in India on a two-day visit, had a meeting with India's Finance Minister Pranab Mukherjee yesterday evening. PTI Caption for pic: India's External Affairs Minister SM Krishna (right) and his UAE counterpart Sheikh Abdullah Bin Zayed Al Nahyan during their joint press conference in New Delhi on Friday. PTI Photo