Prime Minister Narendra Modi and Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan of Abu Dhabi convened for significant talks at Hyderabad House, signaling a new chapter in the dynamic partnership between India and the United Arab Emirates (UAE). The Crown Prince arrived in India the previous day, marking the start of a high-profile visit aimed at deepening bilateral ties and exploring new avenues of cooperation.
External Affairs Ministry spokesperson Randhir Jaiswal provided a glimpse into the warm reception and productive discussions that took place, stating on ‘X’ (formerly Twitter), “A warm welcome for a close friend. PM @narendramodi received HH Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi at Hyderabad House.” The talks were characterized by their comprehensive nature, addressing a wide spectrum of bilateral relations and future strategic collaborations.
The India-UAE relationship has undergone significant evolution in recent years. Prime Minister Modi’s visit to the UAE in August 2015 was a pivotal moment, leading to the establishment of a Comprehensive Strategic Partnership. Since then, the bilateral engagement has expanded through various agreements designed to enhance trade, investment, and economic cooperation. The Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022, has been a cornerstone of this relationship, promoting robust economic exchange. Furthermore, the Local Currency Settlement (LCS) System, which began in July 2023, facilitates transactions in Indian Rupees and UAE Dirhams, strengthening financial ties between the two nations.
In terms of economic impact, the trade relationship between India and the UAE is substantial, with bilateral trade reaching approximately USD 85 billion for the fiscal year 2022-23. The UAE ranks as one of India’s top foreign direct investors, underscoring the strong economic linkages between the two countries. The presence of a vibrant Indian community in the UAE, numbering around 3.5 million, further reinforces the deep ties between the two nations and highlights the UAE’s role as a significant partner.
The UAE’s strategic partnership with India extends beyond bilateral agreements into the realm of global diplomacy. During India’s G20 presidency, the UAE was invited as a special guest, reflecting its growing importance on the international stage. The formal launch of the India-UAE-France (UFI) trilateral cooperation framework in February 2023 exemplifies the countries’ shared commitment to regional and global issues.
Additionally, the UAE’s recent inclusion as a dialogue partner in the Shanghai Cooperation Organisation (SCO) and its membership in BRICS, effective January 1, 2024, highlight its expanding influence and alignment with India’s strategic interests. These developments are indicative of a broader geopolitical alignment and collaboration between the two nations.
Defence relations between India and the UAE have also seen notable advancements. The inaugural bilateral army exercise, ‘Desert Cyclone,’ held in January 2024 in Rajasthan, marks a significant step forward in military cooperation, demonstrating a mutual commitment to enhancing defence capabilities and operational synergy.
As Prime Minister Modi and Crown Prince Sheikh Khaled continue their discussions, the focus will likely remain on expanding this multifaceted partnership. The ongoing dialogue is expected to explore new areas of collaboration, strengthening strategic, economic, and cultural bonds between India and the UAE. This high-level engagement underscores the commitment of both nations to a shared vision of robust bilateral relations and a strengthened presence on the global stage.
