India and the United Arab Emirates (UAE) are set to create a food corridor with an investment of $2 billion aimed at catering to the UAE market and beyond, while also benefiting Indian farmers and generating employment, announced Union Minister Piyush Goyal. During the 12th India-UAE High-Level Task Force on Investment, Goyal revealed that a small working group comprising central and state governments, along with UAE representatives, has been formed to drive the food corridor project on a mission mode basis.
The corridor will include the establishment of food parks in India, a move expected to enhance farmers’ income, create jobs in food processing, and contribute to UAE’s food security. The UAE has committed an initial $2 billion for investments in the food processing sector and logistics required to transport food products to the UAE. The investment is anticipated to materialize over the next two-and-a-half years, though the scale of overall investment will depend on the opportunities presented by Indian businesses.
The food corridor has been under discussion for some time, as the UAE is keen on investing in food processing facilities in India to ensure the availability of high-quality products sourced from Indian farmers, which will then be exported to the UAE.
