India UAE relations
India and the United Arab Emirates share a strong and multifaceted relationship, built on centuries of cultural and economic ties.
Historically:
Ancient: Trade and cultural exchange have existed for millennia, driven by spices, pearls, and textiles.
Post-1971: Relations flourished after the formation of the UAE in 1971.
Politically:
Strong: Regular high-level visits and cooperation on regional and global issues.
Strategic Partnership: Cooperation in defense, security, and counterterrorism.
I2U2 Group: Collaboration with Israel and the US on economic and technology initiatives.
Economically:
Strong trade: UAE is India's third-largest trading partner, with bilateral trade exceeding $68 billion in 2021.
CEPA: Comprehensive Economic Partnership Agreement signed in 2022 aims to double trade within five years.
Indian diaspora: Over 3.5 million Indians live and work in the UAE, contributing significantly to both economies.
Upcoming visit of PM Modi to the UAE
Prime Minister Narendra Modi is scheduled to pay an official visit to the UAE from February 13-14, 2024 which will include inaugurating a temple built by the Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha in Abu Dhabi.
This is Mr. Modi’s seventh visit to the UAE since 2015 and the third in the last eight months.
In this short duration, India’s relationship with UAE has evolved into becoming one of the most prominent bilateral relationships for New Delhi.
Not only has the UAE become India’s strategic partner but it has also become one of the most important linchpins of India’s engagement in the Gulf region.
There is a close rapport between the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, and Mr. Modi.
The BAPS temple, which is built on a 27-acre plot of land donated by the UAE President, will be the second big Hindu temple to be inaugurated in the UAE in recent years, the first being the Hindu Temple in Dubai, opened in October 2022.
Mr. Modi will also address the World Government Summit on February 14 in Dubai as the ‘Guest of Honour’.
The India-UAE story however goes beyond temples, faith or the signing of strategic partnerships.
This special relationship was evident when the UAE President was felicitated in a road show when he was in Gandhinagar in January this year as the chief guest of the 10th Vibrant Gujarat Summit.
The convergence of ideas on global climate issues too was clear when Mr. Modi was in Dubai for the COP28 climate summit.
Both India and the UAE co-launched the Global Green Credit Initiative.
Another special and strong pillar is the economic partnership.
Bilateral trade grew to $85 billion in 2022-23, making the UAE India’s third-largest trading partner and India’s second-largest export destination.
The UAE is also the fourth-largest overall investor in India.
The India-UAE Comprehensive Economic Partnership Agreement, signed on February 18, 2022 in a record time of 88 days, aims to increase trade in services to $115 billion in five years.
On February 1, 2024, the Indian government also approved the signing and ratification of a bilateral investment treaty with the UAE.
Which would significantly boost bilateral economic engagement, especially manufacturing and foreign direct investment.
The RuPay card, a key component of India’s Digital Public Infrastructure (DPI), is accepted in the UAE since August 2019.
From July 2023, the rupee was being accepted for transactions at Dubai’s airports.
India and the UAE also operationalised a rupee-dirham settlement system when, in August 2023, the Indian Oil Corporation made a rupee payment to the Abu Dhabi National Oil Company for crude oil imports.
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