The diplomatic landscape between India and the UAE is characterized by a robust political partnership. High-level visits and numerous bilateral agreements underscore this collaboration. A testament to this strong bond is the Order of Zayed, awarded to Prime Minister Narendra Modi, which highlights India’s crucial role in enhancing these ties.
India and the UAE engage in collaborative efforts on pivotal issues such as regional security, climate action, and the advancement of emerging technologies. A significant milestone in their partnership was the signing of a historic Memorandum of Understanding (MoU) to establish a Local Currency Settlement (LCS) system. This initiative facilitates transactions in Indian Rupees (INR) and UAE Dirhams (AED), benefiting both nations.
The economic relationship between India and the UAE has witnessed remarkable growth, with bilateral trade reaching an impressive $83.65 billion in the fiscal year 2023-24. The UAE stands as India’s third-largest trading partner and is a vital investor, having pledged $75 billion towards India’s infrastructure development through the Comprehensive Economic Partnership Agreement (CEPA).
A vibrant cultural exchange is fostered by India’s expatriate community in the UAE, which constitutes 35% of the local population. Initiatives like the India-UAE Cultural Council play a significant role in promoting mutual understanding through various festivals, exhibitions, and people-to-people interactions.
Trade relations between India and the UAE have evolved significantly, escalating from a mere $180 million in the 1970s to $83.65 billion in the fiscal year 2023-24. The UAE has emerged as India’s second-largest export destination and is a crucial supplier of crude oil and liquefied petroleum gas (LPG).
In the fiscal year 2022-23, UAE investments in India exceeded $21 billion, focusing on critical sectors such as infrastructure, energy, real estate, and technology. The involvement of Abu Dhabi’s Sovereign Wealth Fund has further solidified economic ties, especially through projects in Gujarat’s GIFT City.
The UAE has played a pivotal role in funding projects across various sectors, including manufacturing, green energy initiatives, and healthcare. Additionally, it serves as a significant facilitator for Indian companies aiming to expand their presence in the Gulf region.
As a gateway to the Gulf region, the UAE supports India in its global ambitions, contributing to regional stability and fostering innovation-driven development. This partnership is vital for India's strategic vision.
India and the UAE collaborate on global platforms to address pressing challenges such as food security, clean energy, and emerging technologies. Their alignment reflects a shared commitment to sustainable development.
With its robust trade agreements, strategic cooperation, and rich cultural synergy, the India-UAE relationship serves as a model for how bilateral partnerships can promote mutual growth, innovation, and prosperity in an increasingly multipolar world.
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