India-UAE relations

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India-UAE relations

India-UAE relations

News: On PM Modi’s recent visit to the UAE, India and UAE signed pacts across several areas.

Key Highlights:
• The two sides signed the Bilateral Investment Treaty which will be a “key enabler for further promoting investments in both countries.
• India has signed both a Bilateral Investment Treaty and a Comprehensive Economic Partnership Agreement with the UAE.
• The two sides also signed an intergovernmental framework agreement on the India-Middle East Economic Corridor.
• According to the MEA, the two sides also signed agreements on interlinking of digital payment platforms — UPI (India) and AANI (UAE). It will facilitate seamless cross-border transactions between the two countries.
• They also signed a pact on interlinking domestic debit/ credit cards — RuPay (India) with JAYWAN (UAE).
• The two sides also signed pacts on energy, an MoU on cooperation in the field of electrical interconnection and trade, which opens new areas of collaboration in the field of energy, including energy security and energy trade.
• An MoU for cooperation in the field of heritage and museums will “foster engagement between the two countries aimed at supporting the Maritime Heritage Complex at Lothal, Gujarat.”

“You can quote such examples to highlight importance of Growing Ties between India-UAE.”
• Modi thanked MBZ for his “personal support and graciousness in granting the land for the construction of the BAPS Temple in Abu Dhabi”. “In my very first meeting, when I mentioned this proposed temple, you had said instantly that you can put a finger on a spot (in the map of the UAE), and the land will be granted,” Modi said.

Economic and Trade relations:
• From April 2000-March 2023, the UAE’s investment in India is estimated at around US$ 20-21 billion, of which US$ 15.5 billion is in the form of FDI while the remaining is portfolio investment.
• In 2022-2023, UAE was the fourth biggest FDI investor for India.
• It has committed to invest US$ 75 billion in India’s infrastructure sector.
• Abu Dhabi Investment Authority (ADIA), the principal sovereign wealth fund of the UAE and one of the world’s largest, is an anchor investor in NIIF Master Fund through an investment of US$ 1 billion in the National Infrastructure Investment Fund (NIIF).