India and the UAE

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India and the UAE

News Highlight

The External Affairs Minister held talks with his UAE and discussed cooperation between India and the UAE in the areas of energy, food security, trade and defence.

Key Takeaway

  • India and the UAE are going ahead with food security cooperation under the I2U2, a new West Asian quadrilateral that includes Israel and the U.S.

India-UAE economic and commercial relations

  • Commercial Relations:
  • The traditionally close and friendly India- UAE bilateral relationship has evolved into a significant partnership in the economic and commercial sphere.
  • India is the UAE’s largest export destination and trading partner, with a bilateral trade turnover of US$ 68.4 billion in 2021.
  • India‟s major export items to the UAE are  Precious Metals, Stones, Gems & Jewellery, Minerals and Food Items.
  • The Comprehensive Economic Partnership Agreement(CEPA)
  • India-UAE CEPA was signed in 2022 during the India-UAE Virtual Summit.
  • The Agreement entered into force on May 1st, 2022.
  • CEPA provides an institutional mechanism to encourage and improve trade between the two countries.
  • Vision 2021:
  • In recent years, the UAE, through its “Vision 2021”, has sought to diversify its economy and reduce its dependency on oil.
  • The Vision aims to make the UAE one of the best countries in the world by improving cooperation with other countries. 
  • Foreign Direct Investment (FDI):
  • The FDI from the United Arab Emirates to India during the fiscal year 2022 was projected to be about one billion U.S. dollars.
  • Oil import:
  • UAE is India’s third largest trade partner after China and the United States. India’s imports from the United Arab Emirates of crude oil were US$7.82 billion in 2020.
  • Indian diaspora:
  • The Indian expatriate community, of approximately 3.5 million as per International Migrant Stock 2020 released by the Population Division of the UN Department of Economic and Social Affairs (DESA), is reportedly the largest ethnic community in the UAE, constituting roughly about 30 percent of the country’s population.
  • Space Cooperation:
  • Space cooperation between India and the UAE gained quick momentum during the Prime Minister’s visit to the Emirates in 2015.
  • Together, the two space agencies have developed the nano-satellite, Nayif-1, launched from the Satish Dhawan Space Centre, Sriharikota, in India.
  • The two countries will likely work together on Emirates’ “Red Planet Mission’.

The United Arab Emirates

  • The United Arab Emirates is a federation of seven emirates along the eastern coast of the Arabian Peninsula.
  • Capital-Abu Dhabi
  • Land border:
  • Saudi Arabia-West and South
  • Oman-East and Northeast
  • Maritime border:
  • Persian Gulf-North and Northwest.

Pic Courtesy: The Hindu

Content Source: The Hindu

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Let's Take a Quiz

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Consider the following statements.

1. The I2U2 Group is a grouping of India, Israel, the United Arab Emirates, and the United States.
2. The India-UAE Comprehensive Economic Partnership Agreement (CEPA) was signed in 2014.

Which of the statements given above is/are correct?

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