A privileged strategic partnership, without a gulf

Evolution of India-UAE Relationship

• Over the years, the relationship between India and the UAE has flourished significantly, evolving into one of India’s most prominent bilateral partnerships.
• The UAE has emerged not only as a strategic ally but also a crucial anchor for India's engagement in the Gulf region.
• The close rapport between the President of the UAE and the Indian Prime Minister underscores the depth of this relationship.

Pillars of the India-UAE Relationship

1. Economic Partnership

• The economic collaboration between India and the UAE has witnessed significant growth, with bilateral trade reaching $85 billion in 2022-23.
• The UAE stands as India’s third-largest trading partner and the second-largest destination for Indian exports.
• The Comprehensive Economic Partnership Agreement signed in record time (88 days) aims to further boost trade to $115 billion in five years.
• Additionally, the recent approval of a bilateral investment treaty with the UAE is expected to enhance economic engagement, particularly in manufacturing and foreign direct investment.

2. Fintech Collaboration

• Both nations have made strides in fintech cooperation, exemplified by the acceptance of the RuPay card in the UAE since August 2019.
• The operationalization of a rupee-dirham settlement system further underscores the financial ties between the two countries.

3. Energy Security

• The UAE plays a pivotal role in India’s energy security, notably being the only nation from the region to have strategic oil reserves in India.
• Agreements such as the investment in the strategic crude oil storage facility in Mangaluru underscore the depth of this partnership.

4. Strategic Ties

• India and the UAE share strategic cooperation in various domains, including defence, security, and people-to-people ties.
• Both countries are in close coordination and a part of a number of important groupings such as the I2U2 or the West Asian Quad.
• The UAE is also part of the India-Middle East-Europe Economic Corridor (IMEEC) infrastructure project that was signed during the G-20 summit in Delhi.
• Both nations have displayed exceptional gestures, such as inviting each other to key events despite external pressures.
  • During the UAE visit in August 2019, the Indian PM was conferred with the UAE’s top civilian honour, the Order of Zayed.
• Amid regional challenges like the conflict in Gaza, the visit provides an opportunity for the leaders to confer on critical issues.

Global Climate Collaboration

• The India-UAE relationship extends beyond religious landmarks and strategic agreements.
• It encompasses shared concerns and collaborations on global climate issues.
• This was evident during India's PM presence at the COP28 climate summit in Dubai.
• Both nations demonstrated their commitment to environmental sustainability by co-launching the Global Green Credit Initiative.

Conclusion

• The strategic partnership between India and the UAE reflects a convergence of interests and mutual respect at all levels.
• Despite minor divergences, both countries recognize the potential for further strengthening their relationship in the years ahead