India and UAE Relations
- In 1972, India and the United Arab Emirates established diplomatic ties.
- The visit of the Indian Prime Minister to the United Arab Emirates in August 2015 signalled the start of a new strategic relationship between the two nations, which has resulted in a bigger push in bilateral relations.
- The status of bilateral relations was raised to that of a comprehensive strategic partnership in 2017.
- This provided impetus to begin discussions for a comprehensive economic partnership deal between the UAE and India.
Key elements of CEPA include:
India and the UAE’s relationship:
- It has developed into one of India’s most important bilateral ties.
- The United Arab Emirates emerged as India’s principal strategic ally and one of the keystones of India’s involvement in the Gulf.
The temple of BAPS:
- The UAE President provided a 27-acre tract of land on which it was constructed.
- It will be the UAE’s second-largest Hindu temple to be dedicated.
- The first was the 2022 opening of the Hindu Temple in Dubai.
UAE-India relations:
- The Global Green Credit Initiative was co-launched by the UAE and India.
- Economic cooperation: In 2022–2023, bilateral commerce reached $85 billion.
- making the United Arab Emirates India’s second-largest export destination and its third-largest trading partner.
- The United Arab Emirates is India’s fourth-largest investor overall.
- With the help of the India-UAE Comprehensive Economic Partnership Agreement, trade in services is expected to reach $115 billion within five years.
- A bilateral investment pact between India and the UAE was accepted for signature and approval by the Indian government.
- It would increase trade between the two countries, particularly in the industrial and foreign direct investment sectors.
- Fintech: Since 2019, the UAE has accepted the RuPay card, a vital part of India’s Digital Public Infrastructure (DPI).
- The rupee was accepted for payments at Dubai’s airports as of July 2023.
- A rupee-dirham settlement system was operationalized by India and the UAE.
- For the import of crude oil, the Abu Dhabi National Oil Company received a rupee payment from the Indian Oil Corporation.
Ties of security:
- The only country in the region with strategic oil reserves kept in India is the United Arab Emirates.
- The strategic crude oil storage facility in Mangalore is being invested in by the Abu Dhabi National Oil Company and Indian Strategic Petroleum Reserves Ltd (ISPRL) under a negotiated agreement.
- With a $400 million initial capital contribution.
- People-to-people connections and collaboration in defence and security are also essential components of the partnership.
- Despite opposition from several countries, particularly Pakistan, the UAE hosted the OIC Foreign Ministers’ Meeting in 2019 and invited India’s External Affairs Minister as a keynote speaker and guest of honour.
- The UAE’s annual cultural extravaganza, the Abu Dhabi extravaganza (ADF), had India as its “Guest of Honour” nation in 2018.
- The UAE’s highest civilian award, the Order of Zayed, was given to India’s Prime Minister, Mr. Modi, in 2019.
- In January 2017, the chief guest of the Republic Day parade in Delhi was the Crown Prince of Abu Dhabi, who also serves as the Deputy Supreme Commander of the UAE armed forces.
- Under India’s G-20 chairmanship, the UAE was one of the select few countries that received a special invitation to the September 2023 G-20 meeting.
- The UAE erected a consulate in Hyderabad in June 2023, and the IIT Delhi Abu Dhabi campus has been built.
The Way Ahead:
- Both nations collaborate closely within the region and are a part of several significant alliances, including the I2U2.
- The infrastructure project known as the India-Middle East-Europe Economic Corridor (IMEEC) was signed during the G-20 meeting in Delhi, and the United Arab Emirates is a member of it.
- The corridor intends to span the Arabian Peninsula and link India and Europe.
- It could be a competitor to China’s Belt and Road Project.
- India has many agreements for strategic partnerships around the world, but none show as much mutual respect and convergence as the one with the United Arab Emirates.
- The UAE is aware of India’s impending “global leadership” role, even as India acknowledges and cherishes the UAE’s importance in the area.
- Both nations acknowledge that their special strategic alliance will only get stronger.
