The Union Cabinet chaired by Prime Minister Narendra Modi on Thursday approved the signing and ratification of the Bilateral Investment Treaty between India and UAE.

The government said that the treaty is expected to improve investor confidence and increase foreign investments and Overseas Direct Investment (ODI) opportunities.

“The approval is expected to increase investments in India and is likely to help in realizing the goal of Atmanirbhar Bharat by encouraging domestic manufacturing, reducing import dependence, increasing exports etc, ” an official statement by the Cabinet said.

The approval for the signing and ratification of the ambitious investment treaty comes ahead of Prime Minister Narendra Modi’s likely visit to the UAE this month.

Other announcements

In Thursday’s meeting, the Union Cabinet also extended the Animal Husbandry Infrastructure Development Fund (AHIDF) till 2025-26.

The fund, worth ₹15,000 crore, was approved by the government in June 2020.

According to an official statement, the Cabinet approved the “continuation of Animal Husbandry Infrastructure Development Fund (AHIDF) to be implemented under Infrastructure Development Fund (IDF) with an outlay of ₹29,610.25 crore for another three years up to 2025-26.”

The scheme will incentivise investments for dairy processing and product diversification, meat processing and product diversification, animal feed plant, breed multiplication farm, animal waste to wealth management (Agri-waste management) and veterinary vaccine and drug production facilities, according to PTI.

Besides this, the Cabinet also extended the scheme of sugar subsidy for Antyodya Anna Yojna (AAY) families distributed through the Public Distribution Scheme (PDS) for two more years.

It also approved the determination of the marketing margin for supply of Domestic gas to Fertiliser (Urea) between May 2009 and November 2015 and the continuation of the scheme for Rebate of State and Central Taxes and Levies for the export of garments and made ups.