Indian economy expected to rebound stronger, envoy says
Rating agencies continue to predict a double-digit growth for India for the financial year 2021-22.
The Indian economy is expected to rebound stronger with the potential for rebuilding on a scale not seen for a long time, said Pavan Kapoor, Ambassador of India to the UAE, at the 39th Annual International Conference of ICAI in Dubai on Saturday.
“Most rating agencies like Goldman Sachs, Barclays and Moody’s continue to predict a double-digit growth for India for the current financial year 2021-22, and the Reserve Bank of India is also sticking to its earlier estimate of 10.5 per cent growth for the Indian economy,” said Kapoor.
In terms of foreign direct investments, an indicator of attractiveness of a country for foreign investment among global investors, India attracted its highest ever annual FDI inflow of $81.72 billion during the financial year 2021. “This was an increase of 10 per cent over the previous financial year. Of this, the Abu Dhabi-based Sovereign wealth fund, Mubadala, and Abu Dhabi investment Authority, Adia, together invested $4.12 billion into India last year. In terms of FDI alone, the UAE has now put in up to $11 billion into India, which makes it the eighth largest investor in terms of FDI.”
India-UAE’s economic and commercial relations contribute to the stability and strength of a rapidly diversifying and deepening bilateral relationship, the ambassador said, adding, “Even though our trade figures last year would have come down somewhat, given the curbs and lockdowns, both countries are constantly working on new ideas to further expand our bilateral trade. The pandemic has not been a barrier to our cooperation at all. On the contrary, it has strengthened our resolve to work even more closely. We're also eagerly looking forward to participating at Expo2020 in a big way.”
On the issue of non-resident Indians with UAE resident visas stuck in India due to suspension of incoming flights to the UAE, the ambassador hoped that signs of recovery and a gradually easing of restrictions on international travel would indicate an opportunity for the Indian workforce to return.
Talking about bilateral trade and cooperation, the ambassador said, the UAE and India maintained constant, high-level exchanges even during the pandemic. Throughout the year, respective ministers, and officials from both sides have continue to have exchanges, especially in the areas of health, renewable, energy, education, and culture, and oil and gas. “There is a clear commitment among the leadership of India and the UAE to enhance bilateral ties. In fact, food security and healthcare have emerged as important sectors of growth during the pandemic, showing how strategic ties can adapt to the changing requirements. Since the outbreak of the pandemic India had ensured uninterrupted food supplies with cargo flights to the UAE even during the lockdown in India. We are keen to follow this up with the establishment of food corridors and I think there's a huge potential for investments in this area from the UAE,” said Kapoor.
In terms of health care, India had sent essential medicines to the UAE and augmented the health system with more than 400 healthcare professionals last year at a crucial time. India also cleared the dispatch of 200,000 dozes of the AstraZeneca vaccine to the Dubai health authority in February this year.
On the UAE’s part, the government here provided India with medical supplies and with much needed ventilators and Bipap machines at the end of April this year, when the second wave hit India. Last month, the UAE also gifted one million tablets of Avidavir and DP world and ADNOC provided India with cryogenic tankers to transport liquid medical oxygen. Besides, Emirates airlines also agreed to fly Covid relief supplies from Dubai to several cities across India free of charge.
“These are all the signs of an enduring and strategic partnership and what you call of friends really in need, reaching out to each other, when there is a need for the other one, looking out to the other,” said India’s ambassador to the UAE.
The two countries are actively cooperating to adapt to and embrace renewable energy field, particularly in solar energy through the International Solar Alliance, and are also committed to working closely at IRENA and are exploring newer areas like the hydrogen economy.
“I'm confident that our special partnership shall emerge, even stronger and more well-prepared for a post-Covid world, starting with the year of the 50th for the UAE and then as we move into India at 75 in 2022,” concluded Kapoor.
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