INDIA-UAE TRADE RELATION Business EnvironmentINDIA – UAE TRADE RELATION
INDIA-UAE TRADE RELATION Background of India• It is the Seventh largest country by area• The Second most populous country (1.2billions)• Capital :- Delhi• GDP growth Rate:- 6.5%(2011-2012)• GDP :-US $1.848 trillion• 3rd largest in terms of purchasing power parity (PPP)• Service based economy (contributes 55% to GDP)• HDI :- Rank 134th/187
INDIA-UAE TRADE RELATION Background of U.A.E• 7 Emirates :- Abu-Dhabi, Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, Umm Al Qaiwain (1972)• Population :- 7.891 millions• Capital :- Abu Dhabi• GDP growth Rate :- 3.5 %• GDP :-US $360.25 trillion• HDI :- Rank 30th/ 187• Currency is Dirham• Manufacturing based economy• It ranked as a world’s seventh largest oil reserve
INDIA-UAE TRADE RELATION Introduction• Bilateral trade relations• The discovery of oil allowed the UAE to increase and diversify its trade relations with India• UAE is home to more than 1.75 million Indian, expatriates making Indians the second largest ethnic group in the Arab nation.• In 2008-09, India emerged as the largest trade partner of the UAE with bilateral trade between the two countries exceeding US$44.5 billion• During the first half of 2010, non-oil trade between India and the UAE stood at US$20.4 billion
INDIA-UAE TRADE RELATION Business Environment in UAE• U.A.E. possesses 10% of world’s crude oil reserves, which will last for more than 100 years.• U.A.E. is a free trade zones are home to more than 6400 companies with an estimated trade of around US$ 8 billion.• U.A.E. has easy access to 1.5 billion consumer markets situated in Africa, West Asia and East Europe as well as the areas around the Red Sea and the Gulf.
INDIA-UAE TRADE RELATION Business Environment in UAE• No Corporate Tax and Income Tax• No Personal Income Tax• No foreign exchange controls• Dubai Internet city - Oracle, IBM, HP, Cisco• Dubai media city –CNN,AP.
INDIA-UAE TRADE RELATION INDIA – UAE Bilateral relations•The Indian community is the largest expatriate communityin the UAE, numbering about 1.5 million.•UAE emerging as the second largest market globally forIndian products.•India imports 4.8% of U.A.E.’s export.•U.A.E imports 10% of India export.•A large portion of India’s exports to the UAE istransshipped from Dubai to other countries
INDIA-UAE TRADE RELATION INDIA – UAE Bilateral relations• Cultural Cooperation Agreement• Double Taxation Avoidance Agreement• Agreement to Combat Trafficking• Extradition Treaty• MoU on Manpower Sourcing• MoU between Sebi and Dubai regulatory agency
INDIA-UAE TRADE RELATION India export to U.A.E• Cotton accessories YEARS AMOUNT INCREASE/DEC• Gems and jewelry (IN RS. REASE CRORES)• Man-made yarn and fabrics 2009-10 113348 2.82% Increase• Marine products 2008-09 110229 42.92% Increase 2007-08 62915 13.46%• Machinery and instruments Increase• Plastic and linoleum• Tea
INDIA-UAE TRADE RELATION India imports from U.A.E• Mineral fuels YEARS AMOUNT INCREASE/DEC• Mineral oils (IN RS. REASE CRORES)• Pearl and precious stones 2009-10 91799 15.38% Decrease• Gold 2008-09 105926 48.80%• Pulp and Paper Waste Increase 2007-08 54233 27.76%• Sulphur and unroasted iron pyrites. Increase• Metal Scrap• Organic and inorganic chemicals• Electrical machinery and equipment
INDIA-UAE TRADE RELATION JOINT VENTURES• This joint venture with Rani International, the real estate development subsidiary of the Saudi-based Aujan Group, will consist of a 249-key luxury hotel operated by The Oberoi Group• DLF and Nakheel, signed a 50:50 joint venture for two integrated townships spread across 40000 acres in India
INDIA-UAE TRADE RELATION FDI INVESTED IN U.A.E• India is also the 3rd largest investor in U.A.E• Major Investment sectors are – Agriculture(3.6%) – Crude oil(22.4%) – Manufacturing(12.4%) – Electricity and Water(1.7%) – Construction(9.4%) – Commerce, restaurants and hotels(13.7%) – Transport, storage and communications(7%) – Financing & insurance (6.7%) – Real estate(10.5%) – Government services(11.8%)• Prominent India companies such as L&T, Punj Lloyd Hinduja Group, Pioneer Cement, Oberoi Group of Hotels
INDIA-UAE TRADE RELATION MAJOR INDIAN COMPANIES IN U.A.E• Larsen &Toubro (L&T) $639-million Hydrocarbon projects (crude oil) & gas line projects in UAE• Pioneer cement ltd (for quality cement in construction)• Wipro (Business and Technology Consulting, IT Services, IT Solutions, Business Process Outsourcing(BPO)• TATA MOTORS (automobiles)
INDIA-UAE TRADE RELATION FDI INVESTED IN INDIA• U.A.E. has invested over USD 5 billion in India through FDI and FII routes• Tenth biggest investor in terms of FDI• Major Investment sectors are – Energy (19.1%) Services (9.3%) Programming (7.8%) Construction (6.8%) Tourism and Hotels (5.6%)• Prominent UAE companies such as DP World, EMAAR, Al Nakheel, ETA Star Group.
INDIA-UAE TRADE RELATION MAJOR U.A.E COMPANIES IN INDIA• DP World (Rs 1,200 crore for setting up the International Container Transshipment Terminal (ICTT)• Emaar (invest $150 million in real estate)• ETA Star Group to invest $1Bn in India
INDIA-UAE TRADE RELATION Defense relations• An Agreement on Joint Defense Cooperation was signed by the two sides during June 2003. There was agreement that the Strategic Dialogue would be held annually.• India has been training U.A.E. defense personnel in various disciplines at its specialized institutions• At the first JDCC Meeting in April 2006, both sides agreed to support defense exhibitions in each country by deputing its platforms and personnel.• As a follow up of the meeting of the JDCC in April 2006 several steps were taken Enhance participation in training programmes Exchange of visits by service Chiefs Visits of Naval Ships and Coast Guard Cooperation in defense production industries
INDIA-UAE TRADE RELATION FUTURE• Recent visit : The president of India visited U.A.E. from 21st to 25th November 2010• Agreement on security cooperation, counter-terrorism and maritime security• Specific proposals focusing on education, science and technology and regional security• An important area of cooperation, food security• U.A.E. to invest in projects for enhancing agricultural production in India, especially in the area of food processing• India-U.A.E. relations have been traditionally warm and friendly and based on continuity, trust and confidence without any irritants. This is likely to continue
INDIA-UAE TRADE RELATION FUTURE• Labor welfare• U.A.E. to participate in activities in the petroleum sector to strengthen Indias energy security, as well as in the infrastructure sector, including in the Railways.• Simultaneously, the U.A.E. assured India that it would back New Delhis efforts for a permanent seat in the United Nations Security Council.