UAE becomes India’s 4th largest investor in FY23

Foreign direct investment (FDI) from the UAE to India experienced a significant three-fold increase reaching US$ 3.35 billion.

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The United Arab Emirates (UAE), with which India established a comprehensive free trade agreement in May of the previous year. UAE has become the fourth largest investor in India for the year 2022-23, as per government data.

The data of the Department for Promotion of Industry and Internal Trade (DPIIT) revealed that in the last year foreign direct investment (FDI) from the UAE to India jumped over three-fold. It grew to US$ 3.35 billion from US$ 1.03 billion in 2021-22.

The UAE became the fourth largest investor in India in 2022-23 compared to the seventh in 2021-22.

Singapore was the largest investor in India in FY23, contributing US$ 17.2 billion. Mauritius followed with an investment of US$ 6.1 billion, and the US invested US$ 6 billion.

Rudra Kumar Pandey, Partner, Shardul Amarchand Mangaldas & Co, said, “The rapidly strengthening of bilateral ties and investment cooperation between India and United Arab Emirates (UAE) can be chiefly attributed to the strong bilateral relations between India and UAE, growth in investment commitments from UAE, and the policy reforms to further ease of doing businesses between the two countries.”

According to the data, the UAE contributes approximately 2.5 per cent of the total foreign direct investment (FDI) that India has received from April 2000 to March 2023. Within this timeframe, India has attracted USD 15.6 billion in overseas inflows specifically from the UAE.