India-United Arab Emirates relations

Category: International Relations

India-United Arab Emirates relations

Historical Connections

Dating back to approximately 3000 B.C., the relationship between India and the seven emirates that currently constitute the United Arab Emirates has been marked by strong historical ties. In ancient times, trade routes crisscrossed the Arabian Sea, effectively creating a vibrant network that linked the Indus Valley Civilization, known historically as Meluhha, with the surrounding regions. Meluhha was recognized for its wealth, exporting valuable commodities such as ivory and carnelian. The UAE was strategically positioned within this trade network, facilitating connections between Arab merchants and Indian traders. The ancient seafarers not only navigated vast oceanic routes, but they also helped foster exchange between cultures, fostering the trade of silk, spices, gold, and porcelain.

The geographical and commercial significance of these regions became even more pronounced with the discovery of the direct maritime route from the Red Sea to India by the Greek navigator Hippalus in the first century BC. This remarkable development enhanced trade, leading to increased commercial activities between the two civilizations. Archaeological findings, including remnants of spices and goods in Roman settlements along Egypt's Red Sea coast, underline the historical commercial exchanges and cultural interactions that have persisted over millennia. Such evidence emphasizes the longstanding ties between India and the UAE, which extend far beyond trade into shared cultural aspects.

Modern Era Relations

In the contemporary context, following the establishment of the UAE Federation in 1971, India-UAE relations have flourished significantly. The partnership has expanded beyond the realms of trade and commerce, evolving to encompass strong political, economic, and cultural dimensions. The close ties are further evidenced by the vibrant Indian diaspora in the UAE, which consists of over a million Indians, making it the largest expatriate group in the nation. This large community has not only contributed to the UAE's economy but has also enriched cultural exchanges and encouraged deeper connections between the two countries.

The economic relationship has been particularly robust, characterized by mutual trade agreements and investments that have benefitted both nations. Key sectors include information technology, construction, and services, which report significant Indian contributions to the UAE's development. Cultural ties have also deepened further through various cultural exchanges, celebrations, and cooperative initiatives, which promote greater understanding and collaboration between India and the UAE. This strong partnership signifies how ancient ties have transformed into a modern alliance, illustrating both countries' commitment to sustaining and enhancing their relationships in an increasingly interconnected world.

Strengthening Bilateral Ties in the 21st Century

The 21st century has marked a significant turning point in India-United Arab Emirates relations, characterized by a series of high-profile visits and agreements that have deepened the ties between the two nations. On August 16, 2015, Prime Minister Narendra Modi embarked on a landmark two-day visit to the UAE, becoming the first Indian Prime Minister to do so in 34 years. This visit was symbolic of the growing diplomatic and economic cooperation between India and the UAE, reflecting their mutual interests and shared values.

In 2018, a notable development occurred with the signing of a Memorandum of Understanding (MoU) focused on Technical Cooperation in the Rail Sector. This agreement facilitated collaboration between Indian Railways and UAE counterparts, allowing for sharing of advancements and expertise in railway technology. Such initiatives have not only advanced infrastructural development but have also fostered a spirit of innovation and collaboration between the two countries. Additionally, in August 2018, Modi acknowledged the UAE's proactive humanitarian efforts in response to the devastating Kerala floods, underscoring the special relationship between the governments and peoples of the two nations.

The UAE has also demonstrated strong diplomatic support for India’s domestic policies, notably in August 2019 when it backed the Indian government's move to pass the Jammu and Kashmir Reorganisation Bill. The UAE's Ambassador to India expressed optimism that these changes would enhance social justice, local governance, and stability within the region, signaling a shared commitment to peace and progress. This endorsement illustrated the trust and respect that has developed in the bilateral relationship.

In the realm of education and culture, substantial progress was made with an agreement in August 2021, which enabled faculty members from Indian universities to engage in academic pursuits in Abu Dhabi. This initiative aimed at bolstering academic exchange and promoting cultural understanding, thereby enriching the educational landscape of both nations.

Recent Developments and Future Prospects

The diplomatic engagement has continued into 2024, highlighted by the visit of UAE President Mohammed bin Zayed Al Nahyan to India for the Vibrant Gujarat Summit. During this visit, Prime Minister Modi extended a personal welcome to the UAE leader, culminating in a grand road show in Ahmedabad. Such gestures reflect the personal rapport between the leaders and underscore the importance of their partnership on both political and economic fronts.

As both nations move forward, the focus remains on enhancing cooperation across various sectors, including trade, technology, education, and cultural exchanges. The strategic partnership holds immense potential, particularly as India seeks to strengthen its presence in the Middle East, while the UAE aims to diversify its economy and build resilient international relations. Continued collaboration in these areas will not only benefit the bilateral relationship but also contribute to broader regional stability and shared prosperity.

India-UAE Trade Dynamics

The United Arab Emirates (UAE) has emerged as India's foremost trading partner in the West Asia and North Africa region. As highlighted by journalist Ravi S. Jha, Indian exports to the UAE represent about 6% of India's total global exports. In the financial year 2008-09, India solidified its position as the UAE's largest trade partner, with bilateral trade surpassing an impressive $44.5 billion. This trend of growth continued, as evidenced in 2018-19 when bilateral trade increased by over 20%. During this period, India's exports to the UAE rose by 7%, while UAE's exports to India surged by 37%, ultimately reaching the figure of $29.78 billion.

Despite the rapid economic growth seen in both countries, the pace of bilateral trade has not always mirrored this upward momentum. The trade volume dipped to $49.3 billion in 2016, down from approximately $67 billion in 2013. Recognizing the need to revitalize and enhance trade relations, Indian Prime Minister Narendra Modi's visit to the UAE in February 2018 resulted in a groundbreaking agreement that enabled direct trade in local currencies, thereby reducing dependence on the US dollar. This move was significant in laying the groundwork for an ambitious goal of reaching $100 billion in bilateral trade by 2020.

In addition to trade agreements, infrastructural proposals have been put forward, such as the ambitious underwater rail tunnel project that aims to connect the UAE with the western coast of India. Spanning nearly 2,000 kilometers and supported by pontoons, this infrastructure could potentially revolutionize the connectivity between the two nations by facilitating smoother trade logistics.

The period of 2018-19 saw further growth in India-UAE commerce, with bilateral trade amounting to $59.9 billion—a considerable increase from previous years. India's exports to the UAE rose to $30.13 billion, while imports from the UAE saw a notable increase as well, reaching $29.78 billion. The thriving trade relationship is further showcased through India's participation at the Dubai Expo 2020, where it erected a four-story pavilion to promote business opportunities and attract international investments. This pavilion was significant in representing India's ambitions for a $5 trillion economy, featuring notable brands and multinational firms like Reliance Industries and the Adani Group, alongside participation from at least 13 Indian states.

The potential of emerging Indian startups and unicorns captured attention at the Expo, showing the world the nation's innovation and entrepreneurial spirit. Concurrently, negotiations for a Comprehensive Economic Partnership Agreement between India and the UAE promise to fortify the trade framework and lay the groundwork for extensive commerce in the future. Significant regional dynamics were also showcased with the UAE and Saudi Arabia joining BRICS in 2023. At the G20 Summit later that same year, a memorandum of understanding was signed regarding the India-Middle East-Europe Economic Corridor, involving key stakeholders including the European Union, India, Saudi Arabia, and the United Arab Emirates, indicating ongoing collaborative regional economic efforts.

Collaborative Endeavors in Space

India and the United Arab Emirates (UAE) have fostered a strong collaboration in the arena of space exploration, leveraging the strengths of both nations through the joint efforts of the UAE Space Agency (UAESA) and the Indian Space Research Organization (ISRO). This partnership picked up substantial momentum during Indian Prime Minister Narendra Modi's visit to the UAE in 2015, marking a significant step towards deeper bilateral cooperation in science and technology.

One of the key achievements of this collaboration is the development and successful launch of the nano-satellite Nayif-1. This satellite was launched from the Satish Dhavan Space Centre located in Sriharikota, India, demonstrating the effective synergy established between the two nations in space research and technology. The presence of notable experts such as K. Radhakrishna, the former head of ISRO, has been pivotal in advancing this partnership. His expertise was particularly instrumental in the development of the UAE's Mars Hope Probe, which was successfully launched in July 2020 from the Tanegashima Space Centre in Japan.

Future prospects for collaboration remain bright, with discussions surrounding continued partnerships on ambitious projects such as the Emirates' 'Red Planet Mission.' This exploration mission represents not only a scientific endeavor but also a powerful symbol of international cooperation in the ever-evolving field of space exploration. Both nations are poised to expand their collaboration further, exploring innovative technologies and sharing knowledge, contributing to advancements in understanding the cosmos while enhancing their bilateral ties. The relationship between India and the UAE in space exploration stands as a testament to the potential of international collaboration in tackling challenges that transcend national borders.

Security Relations

Defense cooperation between India and the United Arab Emirates (UAE) has significantly evolved since 2003, when the Chief of Staff of the UAE armed forces visited India, marking the onset of a strategic partnership in security matters. This initial visit paved the way for a series of exchanges that led to the establishment of the Desert Eagle bilateral exercises, which involve both the Indian Air Force (IAF) and the UAE Air Force (UAE-AF). These exercises have been instrumental in improving operational readiness and fostering greater security collaboration between the two nations. The ongoing commitment to defense cooperation was further underscored by the first joint naval exercise, Gulf Star-1, conducted in 2018, which set the groundwork for enhanced maritime security cooperation.

The Annual Defense Dialogue continues to serve as a critical platform for strengthening defense ties, featuring a Joint Defense Cooperation Committee at the ministerial level and regular Naval Staff Talks at the headquarters level. Such structured engagements ensure a systematic approach to defense collaboration. In a significant display of commitment to military cooperation, a substantial delegation from the UAE Ministry of Defense attended the Aero India event in Bengaluru in February 2019, showcasing the UAE's interest in India's defense sector. Likewise, in December of the same year, India's Vice Chief of Air Staff led a delegation to the 9th Dubai International Air Chiefs’ Conference and Air Show, indicating a shared interest in addressing regional security challenges.

Since 2014, India has intensified cooperation with the UAE on various counter-terrorism initiatives, reflecting a mutual interest in combating security threats. A notable instance of this collaboration occurred on March 4, 2018, when the Indian Coast Guard and Emirati special forces successfully executed a high-stakes operation to intercept a yacht carrying Latifa bint Mohammed Al Maktoum. This operation was not only a testament to the close cooperation between the two countries but also underscored the personal interest of Emirati Prime Minister Sheikh Mohammed bin Rashid Al Maktoum and Indian Prime Minister Narendra Modi in enhancing bilateral security ties.

The shared commitment to combat terrorism was further exemplified in December 2020, when Indian authorities, in coordination with the UAE, thwarted a Pakistani ISI backed-terrorist plot in Delhi. The operation led to the arrest of five members of a terrorist cell, including individuals affiliated with Khalistani and Hizbul Mujahideen groups. The swift action demonstrated the efficacy of intelligence-sharing and collaborative law enforcement efforts between the two nations. Most recently, in January 2024, India and the UAE conducted their inaugural military exercise, Desert Cyclone, in Rajasthan, marking a new milestone in their strategic defense partnership and highlighting the ongoing commitment to joint training and operations aimed at enhancing regional security.

Cultural Relations

In 1975, India and the United Arab Emirates solidified their cultural ties through an agreement that aimed to foster collaboration in various sectors, including art, culture, and education. This initial agreement laid the groundwork for extensive cooperation, which has since evolved to encompass academic activities in science and technology, sports, public health, and mass media. These cultural exchanges reflect the understanding and mutual respect that both nations have strove for, enriching the diplomatic relationship over the decades.

The Indian diaspora in the UAE, which now exceeds 3 million individuals, plays a vital role in reinforcing the cultural connection between the two countries. The flow of Indian migrants has been notably active since the 1960s, with a significant portion originating from southern states of India. This vibrant community contributes to the UAE's multicultural society and fosters economic and social ties, bridging the two nations. In recent years, with the strategic partnership between the countries strengthened through various agreements, there has been an impressive surge in cooperation across multiple domains.

In the wake of this burgeoning relationship, the camaraderie between Indian Prime Minister Narendra Modi and President Sheikh Mohamed Bin Zayed Al Nahyan has been highlighted as a cornerstone of the diplomatic partnership. Their collaborative spirit has been further underlined by several agreements since 2014, aiming to increase efficiency and cooperation in trade, investment, and technological exchange. A significant proposal emerged in February 2022, considering the establishment of the first overseas Indian Institute of Technology (IIT), which is a testament to the commitment of both countries towards enhancing educational prospects.

A landmark development in the cultural relations between the UAE and India is the construction of the BAPS Hindu Mandir in Abu Dhabi. This temple not only serves as a place of worship but also stands as a powerful symbol of harmony and collaboration between the two nations. Built by the BAPS Swaminarayan Sanstha, the temple officially opened on February 14, 2024, in a ceremony attended by Prime Minister Modi. During the inauguration, he performed a symbolic ritual by offering water from the virtual Ganga and Yamuna rivers within the temple grounds. Modi emphasized the temple's significance in representing values of peace and unity, stating that it pays homage to the shared cultural heritage of India and the UAE. Spanning 27 acres and constructed from exquisite pink sandstone, this temple is one of the largest in the Middle East, signaling not just the growing ties but also a commitment to multiculturalism and mutual respect.