Published on: February 16, 2024

INDIA-UAE RELATIONS

INDIA-UAE RELATIONS

India and the United Arab Emirates (UAE) share a multifaceted relationship characterized by diplomatic cooperation, robust economic ties, strategic collaborations, and a vibrant people-to-people connect. The evolution of their relationship over the years reflects not only the changing dynamics of the global geopolitical landscape but al so the shared commitment to fostering mutual development and prosperity

Historical Context:

The diplomatic ties between India and the UAE have deep historical roots, shaped by centuries of cultural and economic exchanges. However, it was in 1972, following the establishment of diplomatic relations between the two nations, that the modern foundation for their bilateral ties was laid. Over the years, the relationship has evolved from being primarily economic to encompassing diverse sectors, including defense, technology, and strategic collaborations.

Diplomatic Engagements:

  1. 1972 – Establishment of Diplomatic Relations:
    • The formal diplomatic ties between India and the UAE were established on August 15, 1972. This marked a significant milestone, providing a structured framework for bilateral cooperation.
  2. 1981 – UAE-India Joint Commission:
    • The UAE-India Joint Commission was established in 1981, providing a platform for regular consultations on various aspects of the bilateral relationship. This mechanism has played a crucial role in fostering cooperation in trade, investment, and other strategic areas.
  3. 2015 – Modi’s Historic Visit:
    • In August 2015, Indian Prime Minister Narendra Modi made a historic visit to the UAE. This visit marked the first by an Indian Prime Minister in over three decades. During this trip, the two nations elevated their relationship to a comprehensive strategic partnership.
  4. 2018 – Crown Prince’s India Visit:
    • In 2018, Sheikh Mohammed bin Zayed Al Nahyan, the Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces, undertook a state visit to India. The visit was marked by discussions on enhancing cooperation in areas such as trade, defense, and counter-terrorism.
  5. 2020 – Virtual Summit:
    • The COVID-19 pandemic did not deter diplomatic engagements. In April 2020, Prime Minister Narendra Modi and Crown Prince Sheikh Mohammed bin Zayed Al Nahyan held a virtual summit to discuss the global response to the pandemic and explore opportunities for collaboration.

Economic Partnership:

  1. Trade Relations:
    • Bilateral trade between India and the UAE has witnessed substantial growth over the years. The UAE consistently ranks among India’s top trading partners, with trade crossing billions of dollars annually.
  2. Investments:
    • The UAE has emerged as one of the significant sources of foreign direct investment (FDI) in India. Investments from the UAE have been directed towards various sectors, including infrastructure, real estate, and technology. In 2022, India accounted for 12% of the total FDI projects and 4% of the total FDI received by Dubai
  3. Infrastructure and Development:
    • The UAE has actively participated in India’s infrastructure development projects. Notable investments include the Abu Dhabi Investment Authority’s contribution to the National Investment and Infrastructure Fund (NIIF) and collaboration on the Smart City project in Gujarat.

Energy Cooperation:

  1. Crude Oil and Energy Security:
    • Given the UAE’s prominence as a major oil exporter, energy cooperation has been a cornerstone of India-UAE relations. Long-term agreements for the supply of crude oil have ensured India’s energy security.
  2. Renewable Energy Collaboration:
    • In line with global efforts toward sustainable development, both countries are exploring collaboration in renewable energy. Agreements and investments in solar and wind projects reflect their commitment to clean and green energy.

Strategic and Defense Ties:

  1. Counter-Terrorism Cooperation:
    • Both nations have been active collaborators in the global fight against terrorism. Intelligence-sharing and joint efforts in countering radicalization underscore their commitment to regional and global security.The inaugural edition of joint military exercise ‘Desert Cyclone 2024’ involving India and the UAE is set to occur in Rajasthan from January 2 to January 15 2024
  2. Defense Exchanges:
    • India and the UAE engage in regular defense dialogues, joint military exercises, and collaborations in defense technology. These exchanges contribute to enhanced interoperability and preparedness.

Cultural and People-to-People Ties:

  • Indian Diaspora: The UAE is home to a significant Indian expatriate community, contributing significantly to the country’s economic and cultural diversity. The Indian diaspora plays a pivotal role in fostering people-to-people ties.
  • Cultural Exchanges: Cultural events, festivals, and exchanges between artists and performers from India and the UAE have strengthened the cultural bonds between the two nations. These interactions contribute to mutual understanding and appreciation.
  • Educational Collaboration: Educational ties have been expanding, with collaborative initiatives in academic research, student exchanges, and the establishment of Indian educational institutions in the UAE.

Key Agreements and MoUs:

  • Double Taxation Avoidance Agreement (DTAA): The DTAA between India and the UAE, signed in 1992 and amended in 2017, aimed to prevent the incidence of double taxation and foster economic cooperation.
  • Extradition Treaty: An Extradition Treaty signed in 1999 facilitates the transfer of individuals wanted for prosecution or to serve a sentence for criminal offenses.
  • Memorandum of Understanding on Defense Cooperation (2003): The MoU on Defense Cooperation, signed in 2003, laid the groundwork for enhanced defense collaboration between the two nations.

Challenges and Opportunities:

  • Labor Issues: The welfare and protection of the Indian expatriate community in the UAE remain a priority. Addressing labor-related issues, ensuring fair treatment, and promoting inclusivity contribute to a stronger people-to-people bond.
  • Diversification of Trade: While trade ties are strong, there is room for diversification beyond traditional sectors. Exploring new avenues for collaboration, such as technology and innovation, can lead to more balanced and resilient economic relations.
  • Geopolitical Dynamics: Navigating geopolitical shifts in the region and maintaining open lines of communication are essential for sustained cooperation.

Future Prospects:

  • Technology and Innovation: Both countries can deepen collaboration in technology, artificial intelligence, and innovation, positioning themselves at the forefront of technological advancements.
  • Healthcare and Biotechnology: Collaborations in healthcare and biotechnology can address global health challenges and contribute to health security.
  • Space Exploration: The space sector presents opportunities for collaboration in satellite launches, space exploration, and research. Joint ventures in space technology can open new frontiers for both nations.
  • Sustainable Development: Collaborations in sustainable development, water conservation, climate resilience, and green technologies can address shared environmental challenges.

Conclusion:

India-UAE relations have traversed a remarkable journey from historical trade ties to a comprehensive strategic partnership. The diplomatic engagements, economic collaborations, and people-to-people connections underscore the depth and resilience of this relationship. As both nations navigate the challenges and opportunities of the 21st century, their commitment to mutual growth, security, and shared values positions India and the UAE as key partners in shaping regional and global dynamics. The future prospects hold immense promise for further collaboration across diverse sectors, contributing to the well-being and prosperity of their respective populations.