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Indian Prime Minister Narendra Modi visited the United Arab Emirates (UAE) for two days on August 16-17, 2015, and became the first Indian Prime Minister in 34 years to do so. He was also visiting an Arab country for the first time. Several foreign policy experts hailed the visit as a big success.
With annual bilateral commerce reaching USD 60 billion, the UAE and India enjoy a strong business relationship. The UAE is India’s third-largest trading partner behind China and the United States, whereas India is the UAE’s second-largest commercial partner.
PM Modi also recognised the fact that the UAE is home to a community of 2.6 million Indians. Apart from economic ties, India and the UAE share common interests in terrorism, climate change, and UN reforms. In fact, similar to India’s Operate East programme, the UAE might act as a gateway for the country’s Act West initiative.
India and the UAE decided to upgrade their relationship to a comprehensive strategic partnership, recognising the importance of collaboration in critical sectors such as trade and investment, defence, security, maritime security, and information sharing. PM’s visit to the UAE may be hailed as a huge success based on the following outcomes:
Economic
It is difficult for a developing country to increase the living standards of its population without faster economic development. India’s total domestic savings fell to 30.6 percent in 2013-14 after reaching a peak of 39.8 percent in 2008. It was reflected in low investment rates, which led to lower growth rates over time.
So when the gap between domestic savings and the process of adding widens, foreign investment becomes critical to closing the gap and ensuring faster GDP growth. The UAE has committed to invest USD 75 billion in India by establishing the UAE-India Infrastructure Investment Fund, which would support the development of railways, ports, highways, airports, and industrial corridors. India and the United Arab Emirates agreed to grow their annual trade by 60% in the next five years.
Smart cities
Many Indian cities have seen uncontrolled expansion, resulting in the establishment of slums areas devoid of even basic amenities. Apart from that, additional difficulties such as traffic, pollution, and rubbish disposal prevent Indian cities from joining the ranks of world-class cities. The concept of smart cities was introduced to elevate Indian cities to world-class status.
PM Modi’s visit to Masdar City in the United Arab Emirates was primarily motivated at gaining a better grasp of India’s smart city development. Masdar is the world’s first carbon-free metropolis, relying only on renewable energy sources such as solar and wind. It’s a cutting-edge metropolis with its own intercity rapid transport system.
Diaspora of Indians
In the United Arab Emirates, the Indian diaspora of almost 2.6 million, including Hindus and Muslims, work. India receives roughly USD 6 billion in remittances from its Gulf expats each year. The Indian mission in the UAE has established an e-migrant site to assist Indian migrant workers and an online platform called “MADAD” to aid the diaspora. The PM also launched a new plan for the welfare of the Indian diaspora, under which Indian expatriates in financial distress can receive financial assistance for a variety of reasons, including litigation.
To assist Indian employees in the Gulf, India is exploring manpower and labour agreements with Gulf states. In Abu Dhabi, the UAE government has also set aside property for a Hindu temple.
Defence collaboration
India and the UAE agreed to boost defence cooperation through regular exercises, training, and the manufacture of defence equipment in India.
Terrorism
Terrorism is a topic where India and the UAE have mutual interests. The rise of the Islamic State of Iraq and Syria (ISIS) is one such threat that affects every Asian country. ISIS has taken control of a significant portion of the Middle East, posing a direct danger to the UAE. India, too, is vulnerable to such risk since rising religious fanaticism provides fertile ground for such organisations to thrive. India and the UAE agreed to coordinate counter-terrorism measures such as intelligence sharing to avoid such hazards.
Energy
Energy security is the most critical requirement for a country’s economic success; long-term prosperity would always be a phantom without it. In addition to upstream and downstream petroleum reserves, the UAE pledged to assist India in establishing strategic petroleum reserves.
Conclusion
After the visit to the UAE, Prime Minister Modi praised Crown Prince Sheikh Mohammed bin Zayed for his and his delegation’s kind hospitality and asked him to visit India at a mutually suitable time. The two leaders reaffirmed their objective of a forward-looking comprehensive strategic relationship for the two nations’ prosperity, progress, and security.
