Hindu Editorial Analysis : 13-January-2024
The recent India-UAE Business Summit, held in conjunction with the Vibrant Gujarat Global Summit 2024, aimed to fortify the longstanding ties between India and the United Arab Emirates (UAE). This article delves into the overview of India-UAE relations, the latest developments, the significance of the UAE-India Business Summit, and the challenges both nations face.
India-UAE Ties: Overview
- Diplomatic Relations: Established in 1972, India and the UAE have shared diplomatic ties for several decades.
- Plurilateral/Multilateral Cooperation: The two nations actively participate in various plurilateral platforms, including I2U2 and UFI trilaterals.
- Trade Milestone: India-UAE trade reached USD 85 billion in 2022, solidifying the UAE’s position as India’s third-largest trading partner.
Latest Developments
- Comprehensive Economic Partnership Agreement (CEPA): India and the UAE signed the CEPA in February 2022, leading to a 15% increase in bilateral trade.
- UAE-India CEPA Council (UICC): Launched to foster partnerships, with a focus on critical industries like startups, women entrepreneurs, MSMEs, and the services sector.
- Agreements: Four agreements in food processing and renewable energy have been finalized to bolster bilateral ties.
- Military Exercise: The joint military exercise ‘Desert Cyclone’ in Rajasthan aims to enhance interoperability and share best practices.
- Currency Framework: The RBI and the Central Bank of the UAE agreed on a framework for cross-border transactions using local currencies.
- BRICS Membership: The UAE’s recent inclusion in BRICS is anticipated to deepen bilateral ties and promote global peace and prosperity.
UAE-India Business Summit
- Accelerating Economic Relations: The summit facilitated focused discussions on trade finance, investment facilitation, and sectoral collaboration.
- Mutual Growth: Aiming for mutual growth and prosperity, the summit played a pivotal role in advancing India-UAE economic relations.
Importance
- CEPA Impact: The CEPA has reduced tariffs on over 80% of product lines, eliminated trade barriers, and paved the way for new investment and joint ventures.
- Economic Milestone: The UAE is now India’s fourth-largest investor, third-largest trading partner, and second-largest export destination.
- Future Target: Both nations are working towards achieving a US$100 billion non-oil trade target by 2030.
Challenges
- Peace in West Asia: India emphasizes the significance of peace in the West Asia region, a crucial source of its crude and natural gas needs.
- Israel-Hamas Conflict: Concerns loom over the potential expansion and destabilization of the West Asia region due to the Israel-Hamas conflict.
Why In News
The India-UAE Business Summit, a pivotal event held to strengthen bilateral ties between India and the United Arab Emirates (UAE) as part of the Vibrant Gujarat Global Summit 2024, showcased the commitment of both nations to fostering economic collaboration and exploring new avenues for mutual growth.
MCQs about India-UAE Relations
-
What is the main focus of the UAE-India CEPA Council (UICC)?
A. Enhancing military cooperation
B. Promoting cultural exchanges
C. Fostering partnerships in critical industries
D. Establishing educational collaborations
-
What is the significance of the Joint Military exercise ‘Desert Cyclone’ between India and the UAE?
A. Promoting tourism
B. Enhancing interoperability and sharing best practices
C. Strengthening diplomatic ties
D. Facilitating trade agreements
-
What is the primary outcome of the Reserve Bank of India (RBI) and the Central Bank of the UAE’s agreement?
A. Promoting cultural exchanges
B. Establishing a framework for cross-border transactions using local currencies
C. Reducing tariffs on product lines
D. Implementing trade barriers
-
what milestone did India and the UAE achieve in terms of trade in 2022?
A. USD 50 billion
B. USD 85 billion
C. USD 100 billion
D. USD 120 billion
Boost up your confidence by appearing our Weekly Current Affairs Multiple Choice Questions
