PM MODI'S VISIT TO UAE- RISING OF STRATEGIC TIES BETWEEN INDIA &UAE-7 AGREEMENTS INKED ON TRADE & INVESTMENT, DIGITAL INFRASTRUCTURE, FINTECH, ENERGY, INFRASTRUCTURE, CULTURE, PEOPLE TO PEOPLE REALMS
- Ananya Sharma
- Feb 17, 2024
- 8 min read
Updated: Apr 5, 2024
Hello, Everyone!
A robust Strategic Partnership between the countries is built on their long-standing cooperation to interchange common objectives inclusive of economic, political, defense, and security realms.
The bilateral corporation between India and UAE has taken a leap with time and India is leading in establishing strategic partnerships with UAE which is a cornerstone for India’s relationship with the Middle East. The long-standing bilateral relations between India and UAE have spurred the reciprocation of high-level bilateral visits periodically.
AN UPSURGE OF INDIA-UAE TIES
The India-UAE ties had surpassed in 2023 with the disclosure of India Middle East Corridor and the furthering of the BRICS bloc to encompass the Gulf Nation in the fifteenth edition of the BRICS Summit hosted by South Africa, in Johannesburg held on (22-23)August 2023. The new members of the BRICS block are namely Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates. Their full membership has been assumed on 01Jan,2024.
The integration of UAE in the BRICS group and the disclosure of the India-Middle East Economic Corridor (IMEEC) at the G-20 Summit held in Delhi in September were prime features of the level of cooperation.
The BRICS expansion from five to eleven countries was the main feature of the 15th BRICS Summit The 15TH edition of the BRICS Summit marked a transcend in its global position by the synergetic endeavor of all countries inclusive of the bloc to elevate BRICS’s global position against the foreground of the Western dominance in global matters.
There has been an upsurge in the bilateral relationship between India and UAE due to the consistent efforts by Prime Minister Narendra Modi regarding consolidating India’s relations with UAE and marking paramount of India’s leadership.
The integration of UAE in the BRICS bloc marks a significant enhancement of its strategic cooperation in strengthening its economic affairs through its bilateral trade deal and partnerships and diplomatic affairs worldwide through negotiations on ways to strengthen it. The hosting of COP-28 by UAE, on 30th November 2023 is an example of how UAE inclusion in BRICS has led to more chances for UAE to host the global summit and will aid in stepping up its global –standing and framing diplomatic ties.
HIGH-LEVEL MEETING OF PRIME MINISTER NARENDRA MODI AND UAE PRESIDENT SHEIKH MOHAMED BIN ZAYED AL NAHYAN
Prime Minister Modi had a diplomatic visit to Abu Dhabi, UAE on 13th February 2024. On 14th February 14, 2024, Prime Minister Narendra Modi visited Abu Dhabi for an official meeting in UAE. He was welcomed by UAE President Sheikh Mohamed Bin Zayed Al Nahyan. The Prime Minister was greeted solemnly.
The day marked a high-level dialogue between India’s Prime Minister Narendra Modi and UAE President Sheikh Mohamed Bin Zayed Al Nahyan. The two leading dignitaries had acceded with an inclusive partnership covering trade and investment, digital infrastructure, fintech, energy, infrastructure, culture and people-to-people ties, and also regional and global concerns.
SEVEN AGREEMENTS INKED BETWEEN INDIA AND UAE
The leading dignitaries of both countries i.e. India’s Prime Minister Narendra Modi and UAE’s President Sheikh Mohamad Bin Zayed Al Nahyan, reviewed the International promotion agreement so that the investment in both countries progressed.
India entered into two agreements:
->Bilateral Investment Treaty and
-> Comprehensive Economic Partnership Agreement (CEPA)
1. Bilateral Investment Treaty:-
Under this agreement investment in both countries is encouraged. India has inked two agreements: a bilateral investment treaty and a comprehensive economic partnership agreement with the UAE.
To promote bilateral relations in the economic and trade arena, in Feb 2022 a Comprehensive Economic Partnership Agreement (CEPA)was signed between India and UAE which resulted in a 15% hike in trade. The two countries enjoy blooming trade ties with a bilateral trade of about US$85 billion in 2022-2023.
Besides that UAE is one of the prime investors in India regarding foreign direct investments. In 2022, the maximum imports were petroleum crude and petroleum products and the maximum exports were petroleum products.UAE holds for 9% of its foreign trade and 14% of non-oil export sectors such as agricultural products or crops, manufactured goods, tourist services/receipts, solid minerals, telecommunication services, environmental services, ICT services, financial services, and other exports.
The two countries, India and UAE had also signed the Local Currency Settlement (LCS) System in July 2023, to encourage using Indian Rupee and AED for cross-border transactions. The Local Currency Settlement (LCS) is a process of a bilateral transaction between two countries (here it is India and UAE) which lets trading entities from the two countries make payments in their national currencies.
This process includes all current accounts and working capital allowances. The LCS system will allow importers and exporters to issue invoices and make payments in their national currencies, facilitating the development of the INR-AED currency code.
2. MOU on cooperation in the field of electricity interconnection and trade:
This opens a door for both the countries to associate in the energy sector which further includes energy security and energy trade.
3. Intergovernmental Framework agreement concerning cooperation for the empowerment and operation of the India-Middle East Europe Economic corridor:
The will be founded on the specifications of the agreement of MoU announced on Sep 9, 2023 committing to collaboratively work to forge a new economic corridor (IMEC)by leaders of India, European Union, France, Germany, Italy, Saudi-Arabia, UAE, and the US on the sidelines of the G-20 Leaders Summit and promote India-UAE cooperation for the expansion of the regional connectivity.
The India-Middle East Europe Economic Corridor (IMEC) was previously detailed to have two exclusive corridors, the East corridor linking India to the Gulf and the North corridor connecting Gulf to the Europe. The corridor will foster credible and economical global shipping to rail transmits to fortify current maritime routes.
The corridor is aimed to improve productivity, minimize costs, safeguard the regional supply chains, step up trade possibilities, enhance trade cooperation, generate job opportunities, and phase down greenhouse gas emissions.
4. MoU on cooperation in Digital Infrastructure projects:
This will carve the possibility for comprehensive partnerships covering investment partnerships in the digital arena as well as covering the exchange of technical cognizance, prowess, and proficiency.
5. Cooperation Protocol between the National Library and Achieves of UAE and National Achieves of India:
This protocol will build a comprehensive bilateral corporation in historical documents or we can say the records which consist of restoration and safeguarding of historical documents.
At the International Council of Achieves Congress 2023 in Abu Dhabi, the delegates from India and the United Arab Emirates allied for an important step to consolidate their collaboration in preserving their shared archival heritage.
The official meeting was held between Director General Arun Singhal of the National Achieves of India (NAI) and Director General of the National Library and Achieves Abdulla Majid Al Ali centering on consideration of provisions regarding achieves under the Executive Programme on Cultural Exchange (EPCC) between India and the UAE.
In the course of the meeting, Director General Arun Singhal disclosed an assortment of important documents backdated more than a century from the National Achieves of India. These important documents highlighted the forbearers and rich heritage of UAE fostering a vital part of the nuanced historical tapestry that links the two nations.
DG Arun Singhal detailed NAI’s inclusive strategy for the entire digitalization and preservation through the whole group of NAI headquarters and its localized centers.
Besides preserving historical documents, Director General Arun Singhal underlined that all digitalized documents can be refereed easily through NAI’S centralized site, Abhilekh-PATAL, which is readily accessible for one and all free of cost.
The historical trade relations have been in prime focus by DG Arun Singhal which have lasted for centuries between India and UAE.
He talked about getting a replica of one of the documents about the trade relations which may have a possibility of being found in the National Library and Archives of the UAE or its regional archives.
While the commencement of official dialogue a renewed commitment to consolidate cooperation between India and UAE related to shared archival heritage was approved.
6. MoU on development of National Maritime Heritage Complex (NHMC):
The National Maritime Heritage Complex,(NHMC)is situated near Lothal in the Bhavnagar district of Gujarat and is a world-class facility complex that will feature the Maritime heritage of India. The plan for the development of the complex was introduced in March 2019.
The objective of the National Maritime Heritage Complex (NHMC) is that the complex will be an illustration of India’s rich and diverse maritime heritage and will feature objects having to do with ships and sails on navigable waters.
The complex shortly also aims to showcase ancient shipbuilding and navigational technologies devised by India.
The MoU on the development of the National Maritime Heritage Complex (NHMC) will bolster the collaboration of India and UAE for endorsing the National Maritime Heritage Complex at Lothal.
7. Agreement on interlinking instant payment platforms: UPI (India) and AANI (UAE):
This agreement is based on the MoU on interlinking payment and messaging systems inked in July 2023 and furthermore will aid in ideal cross-border transactions between India and UAE.
In July 2023 an MoU was inked by India and UAE, on linking of Unified Payments Interface and Instant Payment Platform of UAE (UPI-IPP LINKAGE) to transcend economic collaboration. This would let the users in either of the country to make fast, convenient, safe, and cost-effective cross-border funds transfers.
The Central Bank of UAE (CBUAE) has introduced AANI, an instant payment platform operated by Al Etihad Payments with the topmost security level for offering a swift, easily accessible, and assured method to transfer funds instantly.
8. Agreement on interlinking domestic debit/credit cards: RuPay(India) with JAYWAN(UAE)
This agreement will have a pivotal role in furthering collaboration in financial matters by raising acceptance of RuPay throughout the UAE.
As per the MoU signed in July 2023 on UPI-IPP Linkage, it would enable the link to respective card switches (RuPay Switch and the UAE Switch). As per the RBI, the linking of the card switches would allow mutual acceptance of domestic cards and processing of card transactions. The linkage of messaging systems was deemed to allow bilateral financial messaging between the two countries.
PRIME MINISTER NARENDRA MODI AND UAE PRESIDENT MOHAMAD BIN AL NAHYAN OBSERVED TRANSACTION DONE FROM THE UAE JAYWAN CARD:
PM Narendra Modi was grateful to the UAE President Sheikh Mohamed Bin Zayed Al Nahyan for the launch of UAE’s domestic card JAYWAN which is predicated on India’s RuPay credit and debit card stack. The two leading dignitaries observed a transaction done from the UAE JAYWAN card.
THE DIGNITARIES HELD A DIALOGUE ON CONSOLIDATING THE ENERGY PARTNERSHIP:
The dignitaries also held a dialogue on consolidating the energy partnership and recognized the fact that besides UAE being the leading crude and LPG reserve, India is also stepping ahead for long-term contracts regarding LNG.
UAE has a vital role in India’s energy security, through strategic oil reserves stored in India. The agreements such as the investment in the strategic crude oil storage facility in Mangaluru emphasize the ultimate cooperation in this key sector.
AGREEMENT BETWEEN RITES LIMITED AND ABU DHABI PORTS COMPANY SIGNED BEFORE PRIME MINISTER’S OFFICIAL VISIT TO UAE
Before the Prime Minister’s official visit to UAE, an agreement was inked between Rites Limited and Abu Dhabi Ports Company and Gujarat Maritime Board with Abu Dhabi Ports company. It is hoped that the agreement will aid in the construction of port infrastructure which will in turn shore up the India-UAE alliance.
BAPS TEMPLE AS A SYMBOL OF UAE-INDIA FRIENDSHIP
PM Modi and the UAE President recognized the BAPS temple as a reason to rejoice in friendly ties between India and the UAE, furthermore, it symbolizes long-standing regional ties as well as both the countries’ synergetic undertaking to world peace, cordiality, understanding, and pacifism.
The Prime Minister appreciated President Shiekh Mohamed Bin Zayed Al Nahyan’s individual aid and compliance in rendering the land for the construction of the BAPS Temple in Abu Dhabi.
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