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Indian Prime Minister, Mr Narendra Modi took a day two-day visit to the United Arab Emirates on August 16 and 17, 2020. PM Modi’s visit to UAE is noteworthy as he is the first Indian Prime minister to visit UAE in 34 years. There had been certain issues that were highlighted during the visit. There is an agreement between the two nations that the economic and commercial bonds would be strengthened specifically in the areas of civil aviation, climate and energy. The Economic importance of Modi’s UAE visit includes bringing investment to boost India’s GDP and increase trade between the countries.
Economic importance of Modi’s UAE visit
A developing country can’t enhance the standard of living of its people without accelerating its economic growth. In 2008, the gross domestic savings in India stood at 39.8 per cent which had fallen to 30.6 per cent. With the falling of savings, the rate of investment has also got lower and as a result, the growth rate declined throughout all these years. In case the space between the domestic savings and necessary investment keeps expanding then the growth of GDP should be boosted by foreign investment. UAE guaranteed a 75 billion-dollar investment in India via the formation of the UAE-India Infrastructure Investment Fund. The establishment of railways, roads, airports, and ports will be supported by the fund. There is also an agreement between UAE and India that the annual trade between them will also be boosted by 60 per cent in the coming five years.
Energy
Energy is a crucial necessity for the economic growth of any country and if that is not fulfilled then the long term growth of such a country will not be possible. UAE has agreed to assist India through the development of strategic petroleum reserves apart from the upstream and downstream reserves in the divisions of petroleum.
Smart cities
A majority of Indian cities are ruined because of unintended growth and because of that slum clusters are formed in many areas which doesn’t even get the basic amenities. Some other issues like traffic pollution and improper garbage disposal activities hinder the ranking of Indian cities to rank among the global world-class cities. For the purpose of making Indian cities among the world’s best cities, the idea of smart cities was brought up. Knowing how the Indian cities could be developed into smart cities, was one of the main reasons why Mr Modi visited Masdar City in UAE. Masdar city depends upon solar energy and other renewable sources of energy and also, and it is the first zero-carbon city in the world.
Geopolitical Significance
The friendship between India and UAE is a part of aggressive foreign policy methods. India is making an attempt to provide a new meaning to its relations with countries such as Bangladesh, Nepal, China, Mauritius, etc. India has been successful in ensuring a 75 billion-dollar investment from UAE. The amount of investment by the UAE is the largest ever amount assured by any country. Additionally, friendly relations with Gulf countries will also be helpful in the protection of the welfare of Indians who are working in gulf countries.
Indian Diaspora
Approximately 2.6 million Indians earn their livelihood in UAE including both Hindus and Muslims. India gets around 6 billion-dollar worth of money every year from the citizens of India who are living in the UAE. An online platform named ‘MADAD’ has been set up in UAE to provide help to the Indian citizens and also an e-portal is set up to provide assistance to the Indian migrant workers. A new scheme has been announced by the PM which states that the Indian emigrants facing problems could get financial aid for numerous causes. To provide necessary help to the Indian workers in the Gulf states, it is trying to pursue agreements related to manpower and labour. In Abu Dhabi, land has been allotted by the government of the UAE to build a Hindu temple.
Conclusion
PM Modi’s visit to UAE has enhanced the relations between India and the UAE. The visit was successful and the countries have come to agreements regarding various issues. UAE will invest 75 billion dollars in India is one of the Economic importance of Modi’s UAE visit. Both the countries have a similar stance related to increasing terrorism. Measures will be taken to counter-terrorism and intelligence will be shared between the countries. The development of smart cities is one of the reasons for the prime minister to visit the UAE. The urban cities of India will be developed into smart cities so that they can rank among the world’s best cities.
