Daily Current Affairs : 12-September-2024
The official visit of the Crown Prince of Abu Dhabi to India has marked a significant milestone in the India-UAE relationship. During this visit, both countries signed four key agreements in the energy sector, along with several other important Memorandums of Understanding (MoUs) aimed at strengthening bilateral ties. These agreements reflect the growing strategic partnership between the two nations across multiple sectors.
Key Agreements in the Energy Sector
- LNG Supply Agreement:
- The Abu Dhabi National Oil Company (ADNOC) will supply 1 million metric tonnes of liquefied natural gas (LNG) annually to the Indian Oil Corporation Ltd.
- This agreement will help secure India’s energy needs, especially as the demand for natural gas increases.
- Crude Oil Storage:
- ADNOC and India Strategic Petroleum Reserve Ltd (ISPRL) will collaborate to explore new storage opportunities for crude oil in India and renew existing agreements.
- Nuclear Energy Cooperation:
- Emirates Nuclear Energy Company (ENEC) and Nuclear Power Corporation of India Ltd (NPCIL) will work together to enhance nuclear power plant operations and explore mutual investments in nuclear energy.
- Oil Production Concession:
- The Indian company, Urja Bharat, has secured a concession for Abu Dhabi Onshore Block One. This deal will help India strengthen its energy security by gaining access to more oil production.
- Food Security Initiatives:
- The Gujarat government and Abu Dhabi Developmental Holding have signed an MoU to develop food parks in India, aimed at improving food security.
Key Dimensions of the India-UAE Relationship
Diplomatic and Economic Relations
- Diplomatic Ties: India and the UAE established diplomatic relations in 1972, and they signed a strategic partnership agreement in 2015.
- Bilateral Trade: The bilateral trade between India and the UAE was valued at $72 billion in 2021-22, making the UAE India’s third-largest trade partner. UAE is also the second-largest destination for Indian exports.
Food Security and Investment
- Food Security: India, being the world’s second-largest food producer, plays a critical role in supplying food to the UAE. In return, the UAE is a major importer of Indian food products.
- Investments: The UAE has committed significant investments in India’s food sector. In 2022, the UAE pledged $2 billion to help construct food parks and establish a food security corridor in India.
Cultural and Technological Cooperation
- Cultural Ties: The cultural exchange between India and the UAE is growing. The BAPS Hindu temple is being planned in the UAE, and Indian cinema and TV channels are widely available. The annual International Day of Yoga events are also celebrated in the UAE.
- Technological Partnerships: India and the UAE have collaborated in various technological fields, including a partnership between the Indian Space Research Organisation (ISRO) and the UAE Space Agency (UAESA) for the Red Moon mission.
Defence and Security Cooperation
- Defence Collaboration: Both countries have strengthened their defence ties through annual dialogues, joint military exercises like Exercise Desert Flag and Desert Eagle-II, and cooperation in the Indian Ocean Region.
Indian Expatriate Community
- The Indian community in the UAE is the largest expatriate group, with approximately 3.4 million people. They contribute significantly to the UAE’s economy and cultural diversity.
Challenges in the India-UAE Relationship
Despite strong bilateral ties, there are several challenges in the relationship:
- Labour Issues: Reports of mistreatment and exploitation of Indian migrant workers in the UAE remain a concern.
- Trade Imbalance: India’s trade deficit with the UAE, which was $18 billion in 2021, raises economic concerns.
- Geopolitical Tensions: The UAE’s growing ties with Pakistan and its neutral stance on the Kashmir issue are causes of concern for India.
- Regional Competition: Investments by the UAE in the port of Gwadar in Pakistan and Chabahar port in Iran have raised security concerns in India.
Important Points:
Key Agreements Signed during Crown Prince’s Visit:
- LNG Supply Agreement: ADNOC to supply 1 million metric tonnes of LNG annually to Indian Oil Corporation Ltd.
- Crude Oil Storage: ADNOC and ISPRL to explore new storage opportunities and renew existing agreements in India.
- Nuclear Energy Cooperation: ENEC and NPCIL to collaborate on nuclear power plant operations and mutual investments.
- Oil Production Concession: Urja Bharat secures a concession for Abu Dhabi Onshore Block One to enhance India’s energy security.
- Food Security Initiatives: Gujarat government and Abu Dhabi Developmental Holding to develop food parks in India.
Dimensions of India-UAE Relationship:
- Diplomatic Ties: Diplomatic relations established in 1972; strategic partnership signed in 2015.
- Bilateral Trade: Trade worth $72 billion in 2021-22; UAE is India’s third-largest trade partner and second-largest export destination.
- Food Security: India as the world’s second-largest food producer, supplying food to the UAE; UAE’s major imports from India.
- Investments: UAE’s $2 billion commitment in 2022 to build food parks and establish a food security corridor in India.
- Cultural Exchange: BAPS Hindu temple planned in UAE; Indian cinema and TV widely available; Yoga events celebrated annually.
- Technological Partnerships: Collaboration between ISRO and UAE Space Agency for the Red Moon mission.
- Defence Cooperation: Joint military exercises and annual defence dialogues between India and the UAE.
Indian Expatriate Community:
- India has the largest expatriate community in the UAE, with approximately 3.4 million people, contributing significantly to the economy.
Challenges in the Relationship:
- Labour Issues: Concerns over mistreatment and exploitation of Indian migrant workers.
- Trade Imbalance: India’s trade deficit with the UAE stood at $18 billion in 2021.
- Geopolitical Tensions: UAE’s ties with Pakistan and neutral stance on the Kashmir issue cause concerns for India.
- Regional Competition: UAE’s investments in Gwadar port (Pakistan) and Chabahar port (Iran) raise security concerns for India.
Why In News
During the official visit of the Crown Prince of Abu Dhabi to India, several new agreements were signed, marking a significant step towards strengthening bilateral ties between the two nations, particularly in the energy, food security, and technology sectors. These agreements are expected to enhance cooperation and drive long-term economic growth for both countries.
MCQs about India-UAE Relationship
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What is the significance of the LNG Supply Agreement signed between ADNOC and Indian Oil Corporation Ltd?
A. It aims to promote cultural exchanges between India and the UAE.
B. ADNOC will supply 1 million metric tonnes of LNG annually to India.
C. It focuses on improving the trade imbalance between the two countries.
D. It is related to the development of nuclear energy in both countries.
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What was the primary focus of the MoU signed between the Gujarat government and Abu Dhabi Developmental Holding?
A. To develop nuclear power plants in Gujarat.
B. To establish a food security corridor in the UAE.
C. To develop food parks in India.
D. To build joint military training centers in Gujarat.
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Which of the following is a challenge in the India-UAE relationship as mentioned in the essay?
A. Cultural misunderstandings due to language barriers.
B. Labour issues related to the mistreatment of Indian migrant workers.
C. The UAE’s reluctance to sign trade agreements.
D. Disputes over territorial borders.
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How much did the UAE commit to invest in India’s food sector in 2022 as part of the food security initiatives?
A. $1 billion
B. $2 billion
C. $5 billion
D. $10 billion
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