With India and the UAE relations gaining significant strength in the last 10 years, the Gulf nation has emerged as a central pillar of New Delhi’s West Asia outreach, writes Dr Prasanta Kumar Pradhan
The steady progress in India-UAE relations in the past one decade is one of the most successful foreign policy engagements of the Narendra Modi government. In fact, Prime Minister Modi’s seven visits to the UAE in a decade underscore his commitment to strengthening this partnership.
The close and expanding engagement between the two countries is highlighted by Modi’s assertion that India and the UAE are “partners in progress.”
India and the UAE have successfully collaborated in multilateral platforms. The India-Israel-UAE-US (I2U2) grouping is one of the prominent examples. The I2U2 initiative focuses on cooperation in technology, energy, food, and water security.
Under this framework, the UAE is investing US$ 2 billion in India to establish integrated food parks, addressing food security while promoting regional peace and harmony.
Besides, the UAE is a key partner in the India-Middle East-Europe Economic Corridor (IMEC), a major trade and transit route connecting India, West Asia, and Europe.
As the primary maritime link for India, the UAE’s role in the IMEC is crucial. This project strengthens the long-term economic interdependence between the two nations.
In February 2024, during Prime Minister Modi’s visit to the UAE, a Memorandum of Understanding on the Inter-Governmental Framework Agreement for IMEC was signed, marking significant progress in this collaboration.
During India’s G20 presidency, the UAE was invited as a guest country, actively participating in various meetings across India.
Widening trade relations
The UAE is the third largest trading partner of India after the USA and China. Bilateral trade between India and the UAE has significantly increased from US$ 59.5 billion in 2013-2014 to US$ 83.6 billion in 2023-2024.
The Comprehensive Economic Partnership Agreement (CEPA) in 2022 signed between the two countries has helped enhance bilateral trade, facilitate investment and remove trade barriers.
Similarly, foreign direct investment (FDI) received by India from the UAE has also witnessed significant growth.
FDI from the UAE to India has significantly increased, with the UAE becoming the 7th largest investor in India, investing over US$ 15.32 billion from April 2000 to December 2022.
Prime Minister Modi’s appeal to the Gulf leaders to invest in India and India’s improved business environment have facilitated this growth.
In February, India and the UAE India’s RuPay card and the Unified Payments Interface (UPI) transaction system were introduced in the UAE.
Energy security
The UAE plays a vital role in India’s energy security as a major oil supplier and a key partner in the Strategic Petroleum Reserve (SPR).
In January 2017, during Prime Minister Modi’s visit, India’s ISPRL and the UAE’s ADNOC signed agreements for crude oil storage in Mangalore, with the UAE becoming the first country to join India’s SPR programme.
Renewable energy cooperation between India and the UAE is expanding, with both nations actively exploring investment and technological collaboration in areas such as green hydrogen and solar energy.
The UAE has expressed strong support for India’s International Solar Alliance (ISA) initiative. Committed to achieving net-zero carbon emissions, the UAE has also aligned with India’s “One Sun, One World, One Grid” initiative, which promotes cross-border renewable energy.
Burgeoning defence cooperation
India-UAE defence cooperation includes joint naval and air exercises, training programmes, high-level visits, and participation in defence exhibitions.
During his 2014 visit to the UAE, Prime Minister Modi emphasised enhancing defence cooperation, including the manufacture of defence equipment in India. Both countries have also focused on combating terrorism, counter-radicalism, intelligence sharing, cyber security and maritime security.
Both countries have elevated their relationship to a ‘comprehensive strategic partnership’ and established a ‘strategic security dialogue.’
Recent developments include the UAE expressing interest in acquiring BrahMos and Akash missiles, as well as the Light Combat Aircraft (LCA) Tejas. The LCA Tejas was notably introduced at Exercise Desert Flag-8 in the UAE in February-March 2023.
Expanding cooperation in space sector
Besides, India and the UAE have agreed to cooperate in the area of space exploration. Indian Space Research Organisation (ISRO) and the United Arab Emirates Space Agency (UAESA) signed a MoU in 2016 for ‘exploration and use of outer space for peaceful purposes.’
In 2017, UAE’s Nayif-1 nanosatellite was launched by ISRO. In December 2022, India launched UAE’s satellites and participated in the Abu Dhabi Space Debate hosted by the UAE.
In September 2024, IIT Delhi opened its first overseas campus in Abu Dhabi. Earlier, in July 2023 during Modi’s visit to the UAE, an MoU was signed between the two countries to set up an IIT campus in Abu Dhabi.
This is a big step forward in furthering educational ties between India and the UAE and it opens the door for further educational collaboration and research.
While traditionally India-UAE relationship was anchored on trade, energy and diaspora ties, defence and security cooperation has been strengthened in recent years.
Cooperation in counter-terrorism & cyber space
The convergence of interests of both countries to cooperate on the threats of terrorism, piracy and maintaining the safety of sea lines of communication has brought them together to strengthen defence and security cooperation.
Counter-terrorism cooperation between India and the UAE has markedly strengthened. The UAE has deported individuals wanted by India for their involvement in terrorist activities, marking a significant achievement in security collaboration between the two. This effective cooperation underscores the strong partnership in addressing and combating terrorism.
Cooperation to combat cyber-related crimes has increased as both have faced a number of cyber-attacks. India and UAE signed a MoU on Technical Cooperation in Cyber Space and Combating Cyber Crime in 2016.
Cooperation in health sector
During the COVID-19 pandemic, India and the UAE supported each other by exchanging critical resources. In 2020, India supplied medicines, medical equipment, and sent healthcare professionals to assist the UAE.
In 2021, the UAE provided medical supplies and liquid oxygen to India. India also provided COVID-19 vaccines to the UAE. Cooperation in the health sector has strengthened between the two.
Conclusion
The UAE has expressed its commitment to tolerance and coexistence promoting pluralism and rejecting extremism. This inclusive approach, while preserving its Islamic identity, resonates with India’s philosophy of Vasudhaiva Kutumbakam (The World Is One Family).
The inauguration of Abu Dhabi’s first Hindu temple by Prime Minister Modi in 2024 highlights the UAE’s embrace of cultural diversity, strengthening bilateral ties with India.
Around 3.5 million Indians are living and working in the UAE who form a natural link between the two countries. Their contribution towards the progress of the UAE has been acknowledged by the Emirati leadership.
The India-UAE relationship has transformed through shared interests and a mutually beneficial partnership. The UAE views India as a rising global power in politics, economics, and technology, while India sees the UAE as a stable country with a dynamic economy.
Under Prime Minister Modi’s leadership, the partnership has deepened, with convergence on issues like climate change, security, and innovation, driving sustained cooperation in emerging areas.
(The writer is a Research Fellow at the Manohar Parrikar Institute for Defence Studies and Analyses, New Delhi; views expressed here are his own) – India News Network
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