Relations between India and the United Arab Emirates (UAE) is a bilateral relations with multilateral dimensions. India and UAE have a history rooted in mutual interests and a shared commitment to economic growth, regional stability, and cultural exchange. India was one of the first countries to recognize the sovereignty of the UAE. During the year 2022-23, the trade between the two countries reached a very high level, totaling about USD 84.5 billion.
Both India and UAE signed several bilateral agreements covering a range of areas, including trade, investment, energy, technology, and education, to strengthen their strategic partnership. This article explores about the relations between India and UAE.
India-UAE Bilateral Relations – History
India and the United Arab Emirates (UAE) share a robust and multifaceted relationship that has evolved over the years. India was one of the first countries to recognize the sovereignty of the UAE, reflecting the historical ties and shared values between the two nations. Formal diplomatic relations between India and the UAE were established on December 1, 1971, immediately after the UAE gained independence from British rule.
The ties between India and UAE extend beyond the diplomatic sphere, encompassing economic partnerships, socio-cultural exchanges, and defense collaborations and examining the present initiatives that are shaping the future of this bilateral relationship.
Trade and Economic Relations between India-UAE
The economic and trade ties between India and the United Arab Emirates (UAE) have witnessed significant growth and diversification over the years. Both countries share a strong historical and cultural connection, which has laid a solid foundation for fostering robust economic partnerships. The UAE is one of India’s largest trading partners in the Gulf region, and both nations have actively worked towards enhancing trade and investment flows. Initiatives like the Comprehensive Economic Partnership Agreement (CEPA) aim to further streamline and boost economic collaboration between the two countries.
Trade Relations between India and UAE
Bilateral trade between India and the UAE has consistently expanded, making the UAE one of India’s major trading partners in the Middle East. The trade relationship is characterized by the exchange of goods and services across various sectors, including oil and gas, information technology, pharmaceuticals, textiles, and agriculture.
Oil and Gas Sector Relations between India and UAE
The UAE is a crucial supplier of oil to India, meeting a substantial portion of India’s energy demands. Both countries have engaged in strategic partnerships and joint ventures within the energy sector, enhancing energy security for India and providing investment opportunities for the UAE.
Information Technology Relations between India and UAE
India’s expertise in information technology has led to collaborations with the UAE in the development of smart cities and digital infrastructure. Indian IT professionals and companies play a vital role in contributing to the UAE’s technological advancements.
Pharmaceuticals and Healthcare Relations between India and UAE
The healthcare sector has emerged as a significant area of collaboration, with Indian pharmaceutical companies exporting medicines and medical equipment to the UAE. Joint initiatives in healthcare research and development have further strengthened this partnership.
Investment Flows Relations between India and UAE
The UAE has been a crucial source of foreign direct investment (FDI) into India. Indian businesses, in turn, have made substantial investments in the UAE, contributing to the economic development of both nations.
Infrastructure Development Relations between India and UAE
Indian companies have actively participated in the UAE’s infrastructure projects, including construction, real estate, and transportation. This collaboration has not only boosted economic ties but has also facilitated the exchange of technological know-how.
Diversification of Investments Relations between India and UAE
Both countries have sought to diversify their investments, exploring opportunities beyond traditional sectors. The UAE has emerged as a significant source of foreign direct investment (FDI) for India, particularly in sectors like infrastructure, real estate, and renewable energy. Joint ventures and investments in sectors such as renewable energy, tourism, and food processing have showcased the dynamic nature of the economic relationship.
Socio-Cultural Relations between India-UAE
The socio-cultural ties between India and the United Arab Emirates (UAE) have flourished over the years, reflecting a rich tapestry of shared history, values, and traditions. The substantial presence of the Indian diaspora in the UAE has played a pivotal role in fostering these connections, creating a diverse and vibrant cultural landscape.
Diaspora
The Indian diaspora in the UAE is one of the largest and most vibrant communities, contributing significantly to the economic and social fabric of the Emirates. The close people-to-people ties have fostered a strong bond, with cultural events, festivals, and community activities serving as avenues for cultural exchange and mutual understanding.
Education and Healthcare
India and UAE signed an agreement in August, 2021 under which faculty members from Indian universities will spend six to ten months every year collaborating in research and teaching social sciences in Abu Dhabi. Both countries have collaborated in the fields of education and healthcare, with Indian institutions contributing to the academic and medical landscape of the UAE. Student exchanges and joint research initiatives have further strengthened educational ties, fostering a knowledge-sharing ecosystem.
Tourism and Heritage
Tourism plays a pivotal role in promoting mutual understanding and appreciation of each other’s cultures. The UAE’s rich cultural heritage and India’s diverse history attract tourists from both sides, creating opportunities for greater cultural exchange and tourism-related collaborations.
Defense Relations between India-UAE
Defense relations between India and the United Arab Emirates (UAE) have evolved significantly, driven by shared security concerns, geopolitical interests, and a commitment to regional stability. Both nations recognize the importance of a robust defense partnership to address common challenges and contribute to peace and security in the region.
Strategic Partnerships between India-UAE
India and the UAE have deepened their defense ties through strategic partnerships, joint military exercises, and defence technology collaborations. Shared concerns about regional security challenges have led to enhanced cooperation in areas such as counter-terrorism and maritime security. Both the countries are a part of I2U2 group that aims to cooperate on joint investments and initiatives in water, energy, transportation, space, health, and food security. In 2009, India and the UAE signed a landmark agreement on the peaceful use of nuclear energy. This agreement paved the way for enhanced cooperation in the field of nuclear energy and technology.
Defense Procurement Relationship between India-UAE
India and the UAE have engaged in defence procurement agreements, with the Indian Armed Forces procuring advanced military equipment from the UAE. This collaboration strengthens India’s defence capabilities and fosters technological exchange and innovation.
Counter-Terrorism Cooperation between India-UAE
Both nations have actively cooperated in the fight against terrorism, sharing intelligence and working together to counter common threats. Joint initiatives in counter-terrorism collectively contribute to regional stability and reinforce the commitment of both countries to global peace and security.
Present Initiatives taken by India-UAE
The present initiatives taken by India-UAE in times of crisis, in improvement of technology are as follows:
High-Level Diplomatic Exchanges
On August 16, 2015, honorable Prime Minister of India Mr. Narendra Modi began a two-day visit to the UAE, the first state visit by an Indian Prime Minister to the country after 34 years. Regular high-level visits between leaders of India and the UAE underscore the importance both nations place on their bilateral relationship. These visits provide a platform for discussions on key issues and the signing of agreements to further strengthen ties.
Technology and Innovation Collaboration
Both countries are exploring opportunities for collaboration in emerging fields such as artificial intelligence, space technology, and renewable energy. Initiatives like the India-UAE Artificial Intelligence Bridge aim to foster innovation and technological advancements through joint research and development. Recently, honourable Mohammed bin Zayed Al Nahyan visited India to participate in the Vibrant Gujarat Summit held in Gujarat in January, 2024. As a special gesture our honourable Prime Minister Narendra Modi personally greeted the UAE President and held a road show in Ahmedabad.
Crisis Management and Humanitarian Assistance
The COVID-19 pandemic highlighted the importance of international cooperation in times of crisis. India and the UAE collaborated in providing humanitarian assistance, showcasing the solidarity and resilience of their partnership.
Conclusion
The vision of India-UAE relations points towards a promising and dynamic future. As both nations continue to evolve economically, socially, and technologically, the bilateral ties are expected to grow stronger. The ongoing initiatives in areas such as technology collaboration, defence cooperation, and economic partnerships are indicative of a shared commitment to mutual progress.
Looking ahead, the two countries can explore new avenues for collaboration, including sustainable development, climate change mitigation, and space exploration. Furthermore, the India-UAE relationship is a shining example of a strategic partnership that goes beyond mere diplomatic ties.
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FAQ’s on the Bilateral Relationship Between India-UAE
What UAE imports to India?
The UAE primarily imports petroleum and petroleum products, chemicals, machinery, and electronic equipment from India, contributing to the bilateral trade between the two nations.
Who is UAE’s biggest trading partner?
India is the United Arab Emirates’ largest trading partner. The two countries have a robust economic relationship, with bilateral trade spanning various sectors, including oil, technology, and consumer goods.
What is the main source of income in the UAE?
The main source of income in the UAE is derived from oil and natural gas exports. The country has significant reserves and has strategically developed its economy beyond oil in recent years.
What is the relationship between UAE and India?
The strong bond of friendship between the UAE and India is characterised by collaborative economic ties, cultural exchanges, and strategic collaborations. They share a multifaceted partnership encompassing trade, defence, and people-to-people connections.
How safe is the UAE for Indians?
The UAE is generally considered safe for Indians. The country has a low crime rate, and the government prioritises the safety of residents and visitors. However, it’s essential to adhere to local laws and customs for a trouble-free experience.
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