Insights by: Sumit Kochar
Prime Minister Narendra Modi has been a key architect in shaping and strengthening India’s diplomatic ties with the United Arab Emirates (UAE). The proactive diplomacy employed by Prime Minister Narendra Modi has played a pivotal role in elevating the relationship between the two nations to unprecedented levels.
The rejuvenation of the India-UAE partnership commenced in 2015 when Prime Minister Narendra Modi made a historic visit to the UAE, breaking a 34-year gap in high-level visits. This visit marked the beginning of a series of prime ministerial engagements and reciprocal gestures that significantly contributed to the deepening of ties.
Key milestones in the India-UAE relations include UAE President Sheikh Mohammed bin Zayed Al Nahyan being the chief guest at India’s Republic Day parade in 2017 and Prime Minister Narendra Modi receiving the prestigious Order of Zayed in 2019. These events have not only fostered trust but also underscored the strategic importance both nations attribute to their relationship.
Formal diplomatic relations between India and the UAE were established in 1972, with embassies set up in each other’s capitals. However, it was the proactive approach and high-level engagements initiated by Prime Minister Narendra Modi that breathed new life into this longstanding relationship.
The establishment of a comprehensive strategic partnership between India and the UAE in January 2017, during the visit of Crown Prince Mohamed bin Zayed Al Nahyan, marked a significant milestone. Under Prime Minister Narendra Modi’s leadership, this partnership has achieved remarkable success, fostering collaboration on multiple fronts. The commitment of the leaders at the highest level is evident through the numerous high-level interactions, particularly between Prime Minister Narendra Modi and President Sheikh Mohamed bin Zayed, showcasing a special bond built on mutual trust and respect.
A recent highlight was Sheikh Mohamed’s presence as the chief guest at the Vibrant Gujarat Summit 2024, at the personal invitation of Prime Minister Narendra Modi. The warm reception extended to Sheikh Mohamed, both by the Prime Minister and the people of India, underscores the depth of the India-UAE friendship. Sheikh Mohamed’s address at the summit reflects the significance our leaders attribute to this thriving relationship.
In another noteworthy instance, Prime Minister Narendra Modi stood out as the sole world leader to address the High-Level Segment for Heads of State and Government at the World Climate Action Summit of Cop28 at Dubai, on November 2023. The unwavering support of the UAE and the strong partnership with India on the global stage, especially in the success of Cop28 and backing India’s G20 presidency, showcases a remarkable achievement. India and the UAE, under Prime Minister Narendra Modi’s leadership, stand shoulder-to-shoulder, demonstrating a commitment to addressing global challenges and fostering a collaborative future. Further, Prime Minister Narendra Modi will visit UAE in Feb 2024, where he will inaugurate the BAPS Mandir and address “Ahlan Modi”, a mega diaspora event.
Some notable achievements include the India-UAE Comprehensive Economic Partnership Agreement (CEPA), which came into force on May 1, 2022. This agreement has resulted in a substantial reduction of tariffs on over 80% of goods and has facilitated increased non-oil trade, reaching $50 billion between May 2022 and April 2023.
The launch of the India-Middle East-Europe Economic Corridor (IMEC) highlights the UAE’s role in boosting connectivity and providing a credible alternative to China’s Belt and Road Initiative. Additionally, the I2U2 Initiative, involving India, UAE, Israel, and the United States, aims to deepen technological and private sector collaboration to address transnational challenges.
The Rupee-Dirham deal, facilitating cross-border transactions in local currencies, is a significant step to reduce reliance on the US Dollar and promote the internationalization of the Indian Rupee. The UAE’s understanding and support on politically sensitive issues, such as Kashmir, further demonstrate the strength of the diplomatic ties.
The UAE’s acceptance of religious diversity is exemplified by the construction of the BAPS Hindu Mandir in Abu Dhabi, reflecting the cultural and religious harmony fostered by the bilateral relationship.
The significance of India-UAE relations extends across various domains which includes-
Geostrategic Significance: Collaboration in the realm of security holds paramount importance for both internal and external stability, particularly in light of the security implications arising from conflicts in the Middle East. Joint efforts become imperative to fortify security in the Arabian Sea and the Indian Ocean, regions susceptible to piracy. Collaborative military exercises such as Desert Cyclone, Zayed Talwar, and Desert Eagle are pivotal contributions to counter-terrorism measures.
Geopolitical Significance: The UAE’s steadfast support for India in international forums, notably the UN Security Council, plays a pivotal role in enhancing India’s global standing. Furthermore, strengthening ties with the UAE emerges as a strategic imperative to counterbalance China’s expanding influence in the Middle East.
Geo-Economic Significance: On the geo-economic front, the UAE plays a pivotal role as a source of remittances for India, reflecting the substantial economic ties between the two nations. Additionally, the UAE’s position as a major trading partner and investor in India is underscored, with the CEPA poised to further amplify non-oil trade and economic collaboration.
Cultural and People-to-People Significance: The cultural and people-to-people aspects of India-UAE relations are critical in fostering a robust and harmonious partnership. A positive relationship ensures the protection of the interests of the substantial Indian expatriate community residing in the UAE. Moreover, the enhancement of soft power is evident through cultural celebrations such as Diwali in Abu Dhabi and Dubai, showcasing the cultural affinity and mutual understanding that underpin the enduring friendship between the two nations.
Conclusion
Prime Minister Narendra Modi’s proactive diplomacy has elevated India-UAE relations to new heights. Achievements such as the CEPA, IMEC, and the Rupee-Dirham deal showcase the depth of collaboration. Joint efforts in security, counter-terrorism, and the acceptance of cultural diversity highlight the geopolitical and cultural significance. The UAE’s role as an economic gateway, combined with efforts to protect the Indian diaspora, sets the stage for continued mutual growth. This strategic alliance, shaped by Prime Minister Narendra Modi’s vision, exemplifies the potential of international partnerships in fostering prosperity and shared values.
