India and the United Arab Emirates (UAE) have taken significant strides in strengthening their economic partnership, marking a new chapter in their bilateral relations. During Prime Minister Narendra Modi’s two-day visit to the UAE, several key agreements were signed, signaling a deepening of ties between the two nations.
One of the most significant agreements reached during the visit was the bilateral investment agreement between India and the UAE. This agreement builds upon the Comprehensive Economic Partnership Agreement (CEPA) signed between the two countries in 2022. It underscores the commitment of both nations to enhance economic cooperation and foster an environment conducive to investment and trade.
The bilateral investment agreement comes at a time when economic ties between India and the UAE are flourishing. In the fiscal year 2022-23, trade between the two countries reached $85 billion, reflecting a 16% growth compared to the previous year. Moreover, the UAE emerged as the fourth-largest source of foreign direct investment (FDI) in India, with investments totaling $3.5 billion. These statistics highlight the growing importance of the economic relationship between India and the UAE.
During his meeting with UAE President Mohamed bin Zayed Al Nahyan, Prime Minister Modi discussed various areas of cooperation, including trade and investment, digital infrastructure, fintech, energy, infrastructure, culture, and people-to-people ties. Both leaders reaffirmed their commitment to deepening the comprehensive strategic partnership across these sectors, reflecting the breadth and depth of the bilateral relationship.
In addition to the bilateral investment agreement, several other cooperation agreements were signed between India and the UAE. These agreements cover a wide range of areas, including electric interconnectivity, digital infrastructure projects, and financial connectivity. One notable agreement is the linkage between India’s Unified Payments Interface (UPI) and the UAE’s AANI instant payments platform. This agreement aims to facilitate seamless transactions between the two countries and promote financial inclusivity.
Furthermore, India’s RuPay cards will be linked with the UAE’s JAYWAN card, leveraging RuPay’s technology stack to enhance payment solutions in the UAE. This initiative is expected to bolster the universal acceptance of RuPay across the UAE, further integrating the financial ecosystems of both nations.
Infrastructure cooperation was also a focal point of discussions between India and the UAE. RITES Ltd., an Indian government enterprise, signed an agreement with Abu Dhabi Ports Co. to collaborate on infrastructure projects. Additionally, the Gujarat Maritime Board signed a pact with Abu Dhabi Ports Co. to develop port infrastructure, underscoring the mutual interest in enhancing connectivity and facilitating trade between the two countries.
The agreements signed during Prime Minister Modi’s visit underscore the commitment of both India and the UAE to deepening their economic partnership and fostering greater collaboration across various sectors. By leveraging each other’s strengths and resources, both countries aim to achieve shared prosperity and contribute to regional and global economic development.
Overall, Prime Minister Modi’s visit to the UAE has set the stage for enhanced cooperation and closer ties between India and one of its key strategic partners in the Gulf region. As both nations continue to explore opportunities for collaboration and investment, the prospects for further strengthening their economic relationship appear promising.