35 Lakh Indians remitting more than $20 Billion in 2022 proves it backbone of friendship
By Girish Linganna
India's Foreign Secretary, Vinay Kwatra, has described the relationship with the UAE as one of India's most comprehensive and expansive partnerships, spanning the full spectrum of economic activity.
This strengthening of ties is seen as a significant success of Prime Minister Narendra Modi's international policy, experts told Sputnik. Notably, this enhancement in relations has been marked since Modi's first visit to the Gulf nation in 2015. The Prime Minister's recent seventh visit to the UAE underscores this, as it is the most he has visited any single country during his tenure.
In a recent meeting, Prime Minister Modi and UAE President Mohamed bin Zayed Al Nahyan witnessed the signing of ten key agreements ranging from transportation, energy trade, energy security, to financial technology collaboration. An investment treaty exchanged between the leaders is expected to further boost the UAE's already substantial investments in India, where it is the fourth largest investor.
Sudheendra Kulkarni, a former advisor to the Indian Prime Minister, has identified five factors that have contributed to the deepening of ties between New Delhi and Abu Dhabi over the last decade. A significant aspect of this relationship is the large Indian diaspora about 35 lakh Indians in the UAE, which constitutes nearly 40 percent of the UAE's population, making it the largest expatriate community. This community, while mostly part of the working class, includes some of the UAE's wealthiest residents, second only to Emirati nationals.
The Indian diaspora sent $20 billion in remittances to India in 2022, demonstrating their economic influence. Their favoured status in the UAE is attributed to their reputation as law-abiding citizens who pose no threat to local governance.
The growing security and counter-terrorism cooperation between the two nations is driven by their shared concerns about terrorism. Both countries, particularly the UAE and its fellow oil-rich Arab nations in West Asia, are vigilant against radical ideologies threatening internal stability.
The UAE has notably shifted its policy from previously grouping India with Pakistan, to now seeking a closer bilateral relationship with India alone. The UAE recognizes India as an emerging Asian power and a significant market, necessitating stronger bilateral ties.
Highlighting the UAE's commitment to interfaith dialogue and harmony, the Indian expert recalled the historic invitation to Pope Francis by President Mohammed bin Zayed Al Nahyan four years ago, marking the first papal visit to an Arab country.
This ethos of religious tolerance was further emphasized when the Indian Prime Minister inaugurated the “Bochasanwasi Shri Akshar Purushottam Swaminarayan Sanstha (BAPS)” Hindu Temple in Abu Dhabi, marking the first traditional stone Hindu temple in the Middle East, symbolizing the broadening cultural exchange between India and the UAE.
“Expert Highlights Importance of UAE Funding for India's Growth,” noting that the bilateral trade between the two nations soared to $85 billion following the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022. This boost in trade has positioned the Gulf country as India's third most significant trading ally.
The wealthy Gulf monarchy of the UAE has pledged to channel close to $75 billion into India's infrastructure sector over an extended timeline. This substantial investment is aimed at supporting New Delhi's objective of achieving comprehensive and efficient connectivity, a crucial step towards India's goal of attaining developed nation status by 2047.
Niranjan Marjani, a researcher with the Kalinga Institute of Indo-Pacific Studies (KIIPS), an Indian policy institute, emphasized the growing significance of Emirati investments to India. He pointed out that as the two nations aim to expand their partnership beyond the usual domain of energy exports from the UAE, these investments gain importance. His views were conveyed in a discussion with Sputnik.
The UAE stands as one of India's top providers of crude oil and Liquefied Natural Gas (LNG). Marjani emphasized the growing significance of joint endeavours in renewable energy as a key focus for collaboration between the two countries. In line with this, New Delhi has indicated that the recent agreements inked during Modi's trip are intended to foster investment in Green Hydrogen initiatives.
The recognition of climate change as a call for collaborative effort is clear between the two nations. It is anticipated that India and the UAE will assume more significant roles on the international stage in the movement towards a green transition.
Aligned international perspectives have become a key driver in advancing the comprehensive strategic partnership between India and the UAE. The UAE has cultivated a foreign policy that is autonomous and adaptable, similar to India's stance.
The Indian analyst observed that the two countries are members of both the BRICS alliance and the I2U2 framework. For India, enhanced relations with the UAE following the normalization of Israel-Arab states relations through the Abraham Accords have simplified its diplomatic engagements with the Middle East compared to the past, the geopolitical specialist indicated.
I2U2, which stands for India, Israel, the United States, and the United Arab Emirates, is a strategic economic forum established to enhance collaboration. It focuses on areas like infrastructure, technology, and transportation to promote sustainable development and prosperity among the member nations, leveraging their unique strengths and resources.
Marjani pointed out that the political detente between Iran and Saudi Arabia, facilitated by China, also aids India in its diplomatic manoeuvring within the Middle East. This region is vital for India's energy security, foreign investment inflows, and remittance receipts, which are key pillars of its economy. (IPA Service)
(The author is a Defence, Aerospace & Political Analyst based in Bengaluru.)
