 |
| India-UAE Diplomatic Pact: Fortifying Bilateral Relations |
In February 2024, the Prime Minister of India, Narendra Modi, embarked on a significant diplomatic journey to the United Arab Emirates (UAE). This pivotal visit heralded a new era of cooperation between the two nations, as evidenced by the signing of several substantial agreements aimed at bolstering future business and technological partnerships.
Importance of the Visit:
India and the UAE share a robust trade relationship, with the UAE ranking as India’s third-largest trading partner, facilitating exchanges exceeding $85 billion annually. Over the years, UAE companies have invested substantially in India, totaling approximately $17 billion. This bilateral engagement underscores the mutual desire of both nations to fortify their economic ties.
Bilateral Investment Treaty:
A landmark bilateral investment treaty was signed during the visit, streamlining the process for Indian and UAE firms to invest in each other’s markets. By removing barriers and offering assurances, this pact seeks to catalyze cross-border investments, aligning the economic interests of both India and the UAE.
India-Middle East Economic Corridor (IMEC):
An agreement to develop the India-Middle East Economic Corridor (IMEC) was also inked, envisaging the creation of rail and shipping links connecting India to West Asia and Europe. This ambitious project aims to expedite Indian exports to Europe by providing an alternative route, circumventing potential logistical challenges.
Integration of Digital Payment Systems:
Integration between India’s Unified Payments Interface (UPI) platform and the UAE’s domestic digital payments application, ‘Aani’, was announced. This integration promises seamless cross-border money transfers, fostering greater adoption of digital payment systems in both countries.
Enhancing Technological Partnerships:
Cooperation pacts focusing on digital infrastructure, artificial intelligence (AI), and futuristic technologies were established, underscoring a shared commitment to innovation. Collaboration in areas such as 5G connectivity, cloud computing, and semiconductor fabrication is set to drive technological advancements and empower Indian startups seeking expansion opportunities in Dubai.
Cultural Collaboration:
Protocols for cooperation between the National Archives of India and the UAE were established, fostering extensive bilateral collaboration in cultural preservation and heritage restoration. Additionally, a memorandum of understanding (MoU) aimed at supporting the Maritime Heritage Complex at Lothal, Gujarat, was signed, further deepening cultural engagement between the two nations.
Infrastructure Development:
Ahead of the visit, agreements were reached between RITES Limited, Abu Dhabi Ports Company, and the Gujarat Maritime Board, focusing on the development of port infrastructure. These initiatives are poised to enhance connectivity and facilitate smoother trade between India and the UAE.
In essence, Prime Minister Narendra Modi’s visit to the UAE marked a significant stride towards strengthening bilateral relations, fostering economic growth, technological innovation, and cultural exchange between India and the UAE.