Monday, 10 June 2013

India and UAE Could Establish Bilateral Trade Agreement

India, one of the world’s "most promising" countries, is looking to sign a Bilateral Investment Protection Agreement with the UAE in the near future, hoping it will help the growing nation in its quest to become a major force in the global economy. M.K. Lokesh, Indian Ambassador to the UAE, stated, "Both sides have agreed to start the negotiations next month," adding the Indian government is committed to addressing the concerns about UAE investments in India.

There has indeed been a lot of economic progress in India in the last 20 years. Long-regarded as one of the world’s most poorest nations in the last century, it looks as though those days are behind them as India continues to increase it’s prosperity levels among it’s more than one billion people. Although the country’s rise up the ranks as a viable contributor to the global economy has been somewhat slow with some peaks and valleys, it has been overall a relatively steady uphill climb although they have suffered somewhat of a setback as a result of the U.S.-European Banking crisis. They were not alone. Most other countries did as well.

In 1990, India’s GDP worth was a little over US$300 billion and has grown to more than six times since then, with periods of ups and downs due to a number of influential factors. A lot of which has to do with the economic ties that the country has with other major players on the global economic stage. What happens in the West has a big impact on India’s economy and at the same time, the growing markets of the east are putting pressure on India as they are emerging as strong competition. As well, India has had to rely on foreign investments to help power their growth and the government has been fairly slow in its restructuring of foreign investment laws, leading to a lack of confidence from businesses and investors looking to capitalize on its huge potential.

India’s push to grow their economy and increase their prosperity among their people was never going to be an easy task and they have had their struggles and continue to. This pending agreement with the UAE will go a long way in forging a good relationship with one of the world’s most stable and richest nations. The UAE is a great example of how to make the right investments that will generate the best returns in both the short and long term of a country’s economy. Above all, India could certainly benefit from more similar trade agreements with other more stable countries around the world, instead of having to depend too much on the United States or the European nations. Either way, the country has a bright future to look forward to in the 21st century. It just may take a little longer than expected and hoped for.

No comments:

Post a Comment