By Meghaa Gangahar
India and the United Arab Emirates have engaged in trading relations with each other for centuries, though now a new era has dawned. The countries have recently elevated their trade relations to a ‘Comprehensive Strategic Partnership’.
Deepening ties
The partnership began to brew with Modi’s visit to the UAE in 2015. This visit culminated in the UAE pledging an investment of $75 billion in Indian infrastructure projects.
Relations further tightened when Abu Dhabi’s Crown Prince Sheikh Mohamed Bin Zayed Al Nahyan visited India in February 2016. The relationship then took a step forward with the Crown Prince’s invitation as the chief guest at India’s Republic Day parade in January 2017. The UAE also expressed a reciprocating sentiment: the world’s tallest building, Burj Khalifa, was lit in the Indian tri-colour as a homage to the strengthening ties.
[su_pullquote align=”right”]During his visit, the Abu Dhabi Crown Prince and Prime Minister Modi signed 14 agreements solidifying the countries’ bond.[/su_pullquote]
India is the largest trading partner of the UAE, while the UAE is Indias third largest trading partner. Thus, the bilateral negotiations between the two hold tremendous importance. During his visit, the Abu Dhabi Crown Prince and Prime Minister Modi signed 14 agreements solidifying the countries’ bond. Beyond the agreement to identify a comprehensive strategic partnership, 13 MoUs were signed. These covered matters of defence, energy, security and maritime trade among other issues.
Indian Strategic Petroleum Reserves Limited and Abu Dhabi National Oil Company (ADNOC) signed a highlighted agreement. This milestone energy agreement aims to set up a framework for proper storage and management of crude oil by ADNOC in India. Another initiative was an MoU enhancing maritime trade ties. Facilitation of maritime transport and strengthening cooperation will also bolster a joint effort to curb piracy in the Gulf and Indian Ocean.
Prime Minister Narendra Modi receives a book from the Vice-President and Prime Minister of UAE | Photo Courtesy: The Indian ExpressA defensive cooperation
The two sides signed an MoU on cooperation in the field of defence industry. This includes a vow to cooperate in defence manufacturing, transfer of technology and procurement of defence material. A further impetus discussed by the leaders includes joint exercises and training of armed forces. The UAE will also explore opportunities of joint production of defence equipment under the Make in India’ initiative.
[su_pullquote]The two countries echoed an anti-terrorism agenda in cooperation. They mutually agreed to Counter radicalisation and misuse of religion by groups and countries for inciting hatred and perpetrating acts of terrorism.[/su_pullquote]
The two countries echoed an anti-terrorism agenda in cooperation. They mutually agreed to Counter radicalisation and misuse of religion by groups and countries for inciting hatred and perpetrating acts of terrorism. Both also opposed the religious tinting of political issues, which commonly reflected in external views.
The two sides further agreed on cooperation in law enforcement and eradication of crime. A bilateral security cooperation ensures a peaceful and conducive environment in both countries.
A promising future
UAEs support for Pakistan in the past sparked some scepticism. The scepticism deepened due to its agreement with Pakistans views on Kashmir. Yet, a friendship between India and the UAE, even though deemed improbable, emerged strong. In the light of recent developments, bilateral trade between the two is expected to increase by 60 per cent in the next five years. Warm ties with the UAE will also bring India closer to other international organisations. Such diplomatic ties may help India bridge relations with the Gulf Cooperation Council. After all, bilateral linkages are essential in strengthening Indias net of diplomacy.