Context-

India's Prime Minister, Narendra Modi, is embarking on his seventh visit to the United Arab Emirates (UAE) from February 13-14, 2024. This visit underscores the deepening ties between the two nations, transforming their relationship into a privileged strategic partnership. The UAE has emerged not only as a significant bilateral partner for India but also as a crucial player in India's engagement within the Gulf region.

Evolving Dynamics

• In the past eight months alone, the relationship has witnessed remarkable development, solidifying India's stance in the Gulf. A strong personal rapport between Prime Minister Modi and the President of the UAE, Sheikh Mohamed bin Zayed Al Nahyan, has been a catalyst in fostering this strategic partnership.

Diplomatic Milestones: The inauguration of the Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha's temple in Abu Dhabi, built on a 27-acre plot donated by the UAE President, signifies a unique blend of cultural and diplomatic ties. This event follows the opening of the first Hindu Temple in Dubai in October 2022, reinforcing the multi-dimensional nature of the relationship.

Global Engagements: The strategic partnership extends beyond bilateral agreements, evident in both leaders' participation in international forums. The convergence on global climate issues, exemplified during Prime Minister Modi's presence in Dubai for the COP28 climate summit, further highlights the shared commitment to addressing global challenges.

Pillars of the India-UAE Relationship

Economic Collaboration

• Bilateral Trade Surge: The economic partnership between India and the UAE has witnessed remarkable growth, with bilateral trade reaching $85 billion in 2022-23. This places the UAE as India's third-largest trading partner and second-largest export destination. The signing of the India-UAE Comprehensive Economic Partnership Agreement in a record time of 88 days showcases the commitment to fostering economic ties.
• Investment Dynamics: The UAE stands as the fourth-largest overall investor in India, emphasizing the robust economic relationship. The recent approval of a bilateral investment treaty by the Indian government is poised to significantly boost economic engagement, particularly in manufacturing and foreign direct investment.
•  Fintech Collaboration: Collaboration in the financial technology sector is a notable aspect of this partnership. The acceptance of the RuPay card in the UAE since August 2019 and the operationalization of a rupee-dirham settlement system in August 2023 for transactions between Indian and UAE companies highlight the financial integration between the two nations.

Energy Security

The UAE is pivotal in India's energy security, being the only nation from the region with strategic oil reserves stored in India. The agreement between Indian Strategic Petroleum Reserves Ltd (ISPRL) and the Abu Dhabi National Oil Company to invest $400 million in the strategic crude oil storage facility in Mangaluru underscores the depth of cooperation in this critical sector.

Defence and Security Cooperation:

Defence and security cooperation form another robust pillar of the India-UAE relationship. Both nations have consistently made exceptions for each other, exemplified by India's participation in the OIC Foreign Ministers' Meeting in 2019 and the UAE's presence at the Republic Day parade in Delhi in 2017.

People-to-People Ties

The strong people-to-people ties between India and the UAE are evident in various cultural exchanges and honors bestowed upon leaders from both sides. The establishment of the IIT Delhi Abu Dhabi campus and the opening of a consulate in Hyderabad further deepen these connections.

Strategic Collaborations within the Region

• I2U2 - West Asian Quad: Both India and the UAE are integral members of the I2U2 or the West Asian Quad, which includes Israel and the United States. This strategic alignment enhances their collective influence in the region.
• India-Middle East-Europe Economic Corridor (IMEEC): Participation in the IMEEC infrastructure project, signed during the G-20 summit in Delhi, illustrates the joint efforts to connect India to Europe across the Arabian peninsula. This corridor not only strengthens economic ties but also presents a potential rival to China's Belt and Road Initiative.
• Addressing Critical Regional Issues: The timing of Prime Minister Modi's visit amid the ongoing conflict in Gaza provides an opportunity for the leaders of India and the UAE to confer on this pressing regional issue. This underscores the agility and responsiveness of the strategic partnership in addressing critical challenges.

Mutual Respect and Recognition

• Diplomatic Honors and Recognition: Both nations have consistently accorded each other diplomatic honors, reflecting the depth of mutual respect. Examples include India being the 'Guest of Honour' country at the Abu Dhabi Festival in 2018, Prime Minister Modi receiving the UAE's top civilian honor in 2019, and the special invitation extended to the UAE for the G-20 summit under India's presidency in 2023.
• Global Leadership Roles: India and the UAE recognize each other's global leadership roles, with India acknowledging the UAE's regional influence and the UAE being cognizant of India's ascent on the global stage. This recognition forms a unique aspect of their privileged strategic partnership.

Future Trajectory of the Strategic Partnership

The India-UAE strategic partnership is poised for continued growth in the coming years. The absence of major issues of divergence sets this relationship apart, creating a foundation for sustained collaboration. Both nations understand the evolving global landscape and the need for collaborative efforts in areas ranging from economic development to climate change.

• Prospects for Economic Growth: The implementation of the India-UAE Comprehensive Economic Partnership Agreement and the bilateral investment treaty paves the way for enhanced economic collaboration. With a focus on increasing trade in services to $115 billion in five years, the economic dimension of this partnership is set to reach new heights.
• Technological Advancements: Fintech collaborations, exemplified by the acceptance of the RuPay card in the UAE, are likely to deepen. Continued advancements in digital infrastructure and technology will further facilitate cross-border transactions and financial integration.
• Regional and Global Alliances: As members of key regional and global groupings, India and the UAE will continue to coordinate on critical issues. The IMEEC infrastructure project and participation in the West Asian Quad highlight their commitment to fostering regional stability and economic growth.
• Cultural and People-to-People Exchanges: The establishment of educational institutions like the IIT Delhi Abu Dhabi campus and the opening of consulates contribute to the flourishing people-to-people ties. Cultural exchanges, diplomatic honors, and mutual recognition further strengthen the societal bonds between the two nations.

Conclusion

The India-UAE strategic partnership, characterized by convergence, mutual respect, and a comprehensive approach, stands out as a model for international cooperation. From economic collaboration to regional alliances, the multifaceted nature of this relationship positions it as a key driver of stability and growth in the Gulf region and beyond. As Prime Minister Modi embarks on his official visit, the trajectory of this partnership points towards a future marked by shared prosperity, strategic alignment, and enduring friendship.

Source- The Hindu