Hindu Editorial Analysis : 13-February-2024
India’s relationship with the United Arab Emirates (UAE) has become one of the most significant bilateral ties for India. This partnership is not only strategic but also essential for India’s influence in the Gulf region. Here, we will explore the key pillars of this relationship.
Political Ties
India and the UAE established diplomatic relations in 1972. However, a significant boost occurred when Indian Prime Minister Narendra Modi visited the UAE in 2015. This visit marked the first by an Indian Prime Minister in 34 years, laying the groundwork for a new Comprehensive and Strategic Partnership. In August 2019, during another visit, Modi was honored with the UAE’s highest civilian award, the Order of Zayed.
Economic Partnership
The economic relationship between India and the UAE has deep roots, dating back centuries. Historically, trade involved items like dates, pearls, and fish. However, everything changed with the discovery of oil in the UAE, starting in 1962. By 2022-23, bilateral trade reached $85 billion, making the UAE India’s third-largest trading partner. Key highlights include:
- UAE is India’s second-largest export destination.
- UAE ranks as the fourth-largest investor in India.
- The Comprehensive Economic Partnership Agreement was signed on February 18, 2022, aiming for trade in services to reach $115 billion in five years.
Additionally, the acceptance of the RuPay card in the UAE and the initiation of a rupee-dirham settlement system signify advancements in financial cooperation.
Energy Security
The UAE plays a crucial role in India’s energy security. It is the only country in the region with strategic oil reserves stored in India. An agreement between Indian Strategic Petroleum Reserves Ltd and the Abu Dhabi National Oil Company for a $400 million investment in a crude oil storage facility in Mangaluru is a testament to this partnership.
Defense and People-to-People Ties
Defense cooperation and cultural exchange are essential components of India-UAE relations. The UAE hosts over 3.5 million Indians, fostering a rich cultural connection between the two nations. Emiratis are also sensitive to Indian culture, enhancing mutual respect.
Environmental Cooperation
India and the UAE share common views on global climate issues. During the COP28 climate summit in Dubai, both countries launched the Global Green Credit Initiative, demonstrating their commitment to environmental sustainability.
Multilateral Cooperation
India and the UAE cooperate strongly at various international platforms, including:
- The United Nations
- BRICS
- I2U2 (India-Israel-UAE-USA)
- UFI (UAE-France-India Trilateral)
The UAE was a Guest Country at the G20 Summit in September 2023, and it is also part of the India-Middle East-Europe Economic Corridor project.
Progress and Future Developments
The relationship between India and the UAE continues to strengthen. Significant developments include:
- Establishment of the IIT Delhi Abu Dhabi campus.
- UAE’s consulate opening in Hyderabad in June 2023.
- Approval of a bilateral investment treaty to enhance economic engagement, particularly in manufacturing and foreign direct investment.
Why In News
India’s relationship with the UAE has evolved into one of the most prominent bilateral partnerships for India. Not only has the UAE become India’s strategic partner, but it has also emerged as a crucial linchpin of India’s engagement in the Gulf region, facilitating trade, cultural exchange, and political cooperation.
MCQs about India-UAE Relations
- When did India and the UAE establish diplomatic relations?
A. 1972
B. 1985
C. 2000
D. 2015
- What was a significant outcome of Prime Minister Narendra Modi’s visit to the UAE in 2015?
A. The signing of a bilateral investment treaty
B. Modi receiving the Order of Zayed
C. Establishment of IIT Delhi’s Abu Dhabi campus
D. Initiation of the Comprehensive Economic Partnership Agreement
- Which of the following is a key component of India’s financial cooperation with the UAE?
A. Acceptance of the Euro in UAE markets
B. The RuPay card
C. The launch of Bitcoin trading
D. Investment in gold reserves
- What was co-launched by India and the UAE during the COP28 climate summit?
A. The Global Green Credit Initiative
B. The Renewable Energy Agreement
C. The Ocean Conservation Pact
D. The Sustainable Agriculture Framework
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