Context
India-UAE ties are an exemplar for the changing Indian approach towards the wider region
News
India’s ties with the United Arab Emirates (UAE) are set to get a major boost with the crown prince of Abu Dhabi, Sheikh Mohammed bin Zayed al Nahyan, visiting New Delhi as the chief guest at the Republic Day parade
Ties with UAE
Author points out that present government has invested significant diplomatic capital in strengthening ties with UAE.
- A new Beginning: The vigor in India-UAE ties today owes its origins to Prime Minister Narendra Modi’s visit to the UAE in 2015, the first by an Indian Prime Minister to the Emirates in 34 years
- Joint Statement: In the joint statement, both the countries denounced and opposed terrorism in all forms and manifestations
With the conclusion of a Comprehensive Strategic Partnership agreement between India and the UAE this week, this relationship is poised for a dramatic leap
Trade & Investment
- Current trade: Currently, India and the UAE have a $350 billion bilateral trade, which they plan to increase three times in the near future. After China and the U.S., the UAE is India’s largest trading partner
- Investments in India: The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, is seeking to identify investment opportunities in the Indian infrastructure sector
- Fast tracking UAE-India Infrastructure Investment Fund: The $75 billion UAE-India Infrastructure Investment Fund, to support investment in India’s infrastructure sector over a decade, has not seen much progress and the two sides are hoping to put it on a fast track
- Trading with GCC: The Gulf Cooperation Council (GCC) is India’s second-largest trading partner, the largest single origin of imports into the country, and the second largest destination for exports from India
- The GCC countries supply 45 per cent of India’s petroleum, with the UAE being the sixth largest source of imports of crude oil. The region remains a major destination for Indian investment
- India hopes that major GCC states such as Saudi Arabia, the UAE, and Oman will participate in its planned infrastructure expansion
- Interest in India’s human resources: Meanwhile, the Gulf states are interested in human resources from India in order to develop sectors as varied as information technology, construction, transportation and services
Link between India’s trade & Energy security and security of Straits of Hormuz & Bab-el-Mandeb
India’s trade and energy security is inextricably linked to the security of the Straits of Hormuz and Bab-el-Mandeb
- Naval exercises with Gulf States: The Indian Navy regularly visits Gulf ports, and trains with states in the region. It has undertaken a series of naval exercises with a number of Gulf States in recent years, thereby helping in expanding India’s reach in the region. Indian warships have also been deployed in the Gulf of Aden to carry out anti-piracy patrols
Expatriate labor
Indians are the largest expatriate community in the GCC states, numbering around 7 million
- Expatriate strength: Indian expatriate labour constitutes around 30 per cent of the total population of the UAE, and Indians have a significant presence in Bahrain, Oman, and Qatar
- Remittances:India receives around 52 per cent of its remittances from its Gulf expatriates, which have contributed significantly to India’s economic resurgence, even as there have been growing concerns about the living and working conditions in the host countries
- ¨ Addressing the concerns:India is pursuing manpower and labour agreements with Gulf states to help Indian workers in the region. It has also launched the eMigrate system for recruitment of Indian workers across the 17 Emigration Check Required countries
Read More: eMigrate system
