India, UAE to set up a joint working group for ADIA investment in India

New Delhi, Jan 16 (PTI) India and the UAE today agreed to set up a joint working group to facilitate investment by the Abu Dhabi Investment Authority in the country's ambitious Delhi-Mumbai Industrial Corridor (DMIC) and other infrastructure projects. The issue was discussed between India's Commerce and Industry Minister Anand Sharma and Abu Dhabi Investment Authority (ADIA) Managing Director Sheikh Hamed Bin Zayed Al Nahyan here. The USD 90 billion DMIC project being piloted by the Industry Ministry envisages the establishment of several industrial cities across seven northern and western Indian states. "We have invited ADIA, which is the biggest sovereign wealth fund of the world, to invest in the DMIC and other infrastructure projects," Sharma said after the meeting. The ADIA -- one of the world's largest sovereign wealth funds, which is as large as USD 1 trillion -- has expressed keen interest in investing in India. "The ADIA will come forward to work with India in the DMIC project.... We have agreed to set up a joint working group to work out the modalities," Sharma said, adding, "We will be very happy to see your (ADIA) participation in India's infrastructure-building." The minister said India will be investing USD 1 trillion in infrastructure over the next five years and huge opportunities are present in the country. "This is an opportunity to enter this huge market," Nahyan said. Meanwhile, an official statement said keeping in mind the worsening investment climate in developed nations, both leaders agreed that the UAE and India should work toward a greater level of engagement. Sharma said besides infrastructure, the other areas where both sides can explore investment opportunities include the pharma, services, engineering and agro-processing sectors. ADIA has asked for more support in its exploration of opportunities in the Indian market. Sharma also said the UAE should encourage other members of the Gulf Cooperation Council (GCC) to hold a third round of negotiations on the proposed Free Trade Agreement between India and the GCC at the earliest. The UAE is India's biggest trading partner in the entire West Asia and North Africa (WANA) region and accounted for about 63 per cent of India's total trade with GCC countries in India's fiscal 2010-11 ended March 2011. Bilateral trade between the countries has registered an over 300 per cent increase in the last five years and stood at USD 66.56 billion in the January-November 2011 period. PTI Caption for pic: India's Minister for Commerce & Industry and Textiles Anand Sharma (left) shaking hands with Sheikh Hamed bin Zayed Al Nahyan, Managing Director of Abu Dhabi Investment Authority (ADIA), during a delegation level meeting in New Delhi on Monday. PTI Photo