India to discuss rise in silver imports with UAE
Joint trade meeting to discuss silver import concerns; India-UAE plan food corridor and payment system integration
India to Address Surge in Silver Imports from UAE, $2 Billion Food Corridor in Focus
MUMBAI/NEW DELHI: India’s concerns over increased silver imports from the UAE after the implementation of the bilateral trade agreement are expected to be discussed at a joint meeting next week.
“We have a joint trade committee working on these issues. They are having a meeting in the UAE next week and it will be taken up there. I have already discussed this issue with my representative, Thani Bin Ahmad Al Siodi, and the UAE has promised. Commerce and Industry Minister Piyush Goyal told reporters that there will be no impact.
Silver imports from the UAE rose to $1.7 billion from $29 million in the last financial year 2022-23. However, both governments are optimistic about the progress of the trade agreement. India and the UAE are working on linking two national payment platforms – UPI (India) and AANI (UAE) – to facilitate seamless cross-border transactions between the two countries.
In a press conference, Goyal announced that India and the UAE will set up a food corridor, investing over $2 billion over two to two-and-a-half years, which will help Indian farmers earn more income and create more jobs. Plans to set up food parks in the country were also included in the discussion.
“It has been under discussion for a long time that the UAE wants to invest in setting up food processing facilities in India to get high-quality products suitable for the UAE and to sell them using Indian farmers’ produce,” the minister said after a meeting of the India-UAE High Level Working Group on Investment.
Without giving any time frame, Goyal said investments from the UAE would touch $100 billion and flow into several sectors, including infrastructure and manufacturing. UAE has pledged to invest up to $75 billion in India in 2018.
The UAE is India’s third largest trading partner after the US and China, with bilateral trade estimated at $85 billion by 2023-24. The UAE is the second largest export destination for Indian goods, with a trade deficit of $35.6 billion and a trade deficit of $12.4 billion, according to Department of Commerce figures.
There are plans to create a $2 billion food trail.
India and the United Arab Emirates are working together to construct a $2 billion food corridor over the course of the next two to three years. Principal advantages consist of:
Income growth for farmers: Indian farmers will have access to the extremely profitable UAE market by providing inputs to food processing facilities.
Growth in Employment: The construction of processing plants will lead to an increase in jobs in the food and agriculture industries.
UAE food security: A consistent supply of high-quality food products is guaranteed by the corridor.
Deeper Trade and Economic relations between India and the United Arab Emirates are further strengthened by this project.
An increase in the import of silver
The UAE’s imports of silver increased from $29 million in 2022–2023 to $1.7 billion in the previous year, indicating stronger economic relations.
Integration of UPI and AANI
The United Arab Emirates (UAE) and India will combine their payment systems, UPI and AANI, to facilitate smooth cross-border transactions and boost trade.
