Recent Context:
India and the United Arab Emirates signed four pacts to expand energy cooperation as Prime Minister Narendra Modi held bilateral talks with the visiting Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan.
Major Outcomes of the Bilateral Meet:
–Four Pacts:
1.An agreement for long-term LNG supply between Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Ltd and
2. Another between ADNOC and India Strategic Petroleum Reserve Ltd (ISPRL) are among the four pacts.
3.Emirates Nuclear Energy Company (ENEC) and Nuclear Power Corporation of India Ltd (NPCIL) also inked an MoU for operation and maintenance of the Barakah Nuclear Power Plant.
4. Production concession agreement for Abu Dhabi Onshore Block 1 between Urja Bharat and ADNOC.
-A separate pact was inked between the Gujarat government and Abu Dhabi Developmental Holding Company PJSC on setting up food parks in India.
Evolution of India UAE Relationship through Years:
The evolution of India-UAE relations is a story of increasing cooperation and strategic partnership, with roots in shared history, culture, and economic interests. The relationship has expanded significantly since the late 20th century, moving from primarily economic and trade ties to a broad-based strategic partnership that encompasses security, defense, energy, and people-to-people ties.
1.Historical and Cultural Ties- The relationship between India and the Gulf, including the UAE, dates back centuries. There has been a long history of cultural and trade exchanges across the Indian Ocean.
-Before the discovery of oil, pearls, spices, and other goods were traded between the UAE and India, particularly through the ports of Gujarat and the western Indian coastline. Indian labor has long been vital to the UAE’s development, and the Indian expatriate population remains one of the largest in the UAE.
2. Early Diplomatic and Economic Relations (1970s–1990s) – The UAE was founded in 1971, and India quickly established diplomatic relations with the new state.
-Early relations were marked by trade and the migration of Indian workers to the UAE, especially in the construction and service sectors, which played a crucial role in the UAE’s development.
-During this period, the relationship was largely transactional, based on economic and trade interests, but India was seen more as a distant partner.
3. Diversification and Strengthening of Relations (2000s–2010s)
–Economic Cooperation: The relationship gained momentum in the 2000s, as trade between India and the UAE grew significantly, particularly after the economic liberalization in India in the early 1990s.
-By the early 2010s, the UAE had become one of India’s largest trading partners. In sectors like petroleum, India has long been a key importer of crude oil from the UAE, while the UAE imports goods like textiles, jewelry, and agricultural products from India.
–Strategic Shift: The late 2000s and early 2010s saw a shift toward a more strategic engagement, particularly in the areas of energy security and counter-terrorism.
–Defense and Security: In the wake of global security concerns, particularly regarding terrorism and regional instability, India and the UAE began cooperating more closely on defense and security matters.
–Political Visits: High-level exchanges, such as visits by Indian Prime Minister Manmohan Singh and UAE leadership, helped build personal rapport and strengthen bilateral cooperation.
4. The Comprehensive Strategic Partnership (2015–Present) –
–Narendra Modi’s Leadership: India’s relations with the UAE saw a significant boost with the election of Prime Minister Narendra Modi in 2014.
– During Modi’s visit, both countries agreed to establish a Comprehensive Strategic Partnership.
– Areas of cooperation expanded to include investments, renewable energy, counter-terrorism, cyber security, and space collaboration.
–UAE Investments in India: The UAE has committed significant investments in India’s infrastructure projects, such as ports, airports, and highways. The UAE sovereign wealth funds have also increased their stakes in Indian businesses and the real estate sector.
–Security and Defense Cooperation: The two countries have expanded defense ties, with joint military exercises and enhanced maritime cooperation. Counter-terrorism cooperation has been a cornerstone of this relationship, given shared concerns about regional stability.
–Energy: The UAE has become a critical partner in India’s energy security strategy, both in terms of oil supplies and as an investor in India’s strategic oil reserves.
–Cultural and People-to-People Ties: The Indian expatriate community in the UAE, estimated to be over 3 million, remains a vital component of the relationship. The diaspora serves as a bridge between the two nations, contributing to the UAE’s economy and fostering goodwill between the countries.
5. Post-COVID and Future Outlook- Economic Recovery: In the wake of the COVID-19 pandemic, both nations have sought to rebuild and strengthen economic ties. The UAE has played a critical role in supporting India’s healthcare system during the pandemic, particularly through the provision of medical supplies and vaccines.
–Comprehensive Economic Partnership Agreement (CEPA):
In February 2022, India and the UAE signed the CEPA, aimed at boosting trade to $100 billion and trade in services to over USD 15 billion in five years. This agreement focuses on reducing tariffs and improving access to markets.
–Technology and Innovation: Cooperation is increasingly shifting toward technology and innovation, including renewable energy, artificial intelligence, and space exploration. The two countries signed agreements on interlinking of digital payment platforms- UPI (India) and AANI (UAE).
–Signing of a pact pact on interlinking domestic debit/ credit cards RuPay (India) with JAYWAN (UAE).
–Geopolitical Cooperation: Both India and the UAE are engaging more on global platforms, coordinating issues like climate change, regional security, and global trade.
Conclusion:
-India-UAE relations have evolved from a focus on trade and labour to a multidimensional partnership that encompasses energy, defense, security, and investment.
-Both countries recognize the strategic value of their partnership, which is now characterized by growing interdependence and a shared vision for regional and global stability.
-The future trajectory looks promising, especially with the growing importance of green energy, technology collaboration, and strategic geopolitical alignment in West Asia and beyond.
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