The Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan, is on his first official visit to India. Upon his arrival at New Delhi airport on Sunday (September 8), he was received by commerce and industry minister Piyush Goyal and accorded a ceremonial welcome.
His two-day official visit begins today (September 9). The Crown Prince, who is accompanied by several ministers from the United Arab Emirates (UAE) government and a business delegation, is meeting Prime Minister Narendra Modi for bilateral talks.
What is on the agenda and why is the visit of Abu Dhabi’s Crown Prince to India significant? Let’s dive deeper.
India-UAE ties
India and the UAE have historical ties defined by centuries-old maritime trade. India is the UAE’s second-largest trading partner after China. For India, the UAE is one of the top export destinations.
In 2022, the two nations signed the Comprehensive Economic Partnership Agreement (CEPA) to enhance trade and reach the target of $100 billion by the end of the decade.
Since then, the trade between India and the UAE has touched historic highs from $72.9 billion in FY22 to $84.5 billion in FY23.
According to the Ministry of External Affairs (MEA), the UAE was among the top investors in India in terms of foreign direct investments (FDI) in 2022-23.
During PM Modi’s last visit to the UAE in February, the two countries signed the Bilateral Investment Treaty (BIT). As per The Hindu, this made the UAE the only nation with which New Delhi has both a trade and an investment pact.
Impact Shorts
More ShortsIndia and the UAE’s partnership transcends beyond trade. The 3.5 million-strong Indian diaspora in the Gulf nation – its largest expatriate group – is an “integral part of the growth and development” of the UAE’s economy and society, as per the MEA.
The UAE, along with other Gulf Cooperation Council nations, is among the major contributors to India’s foreign remittance inflow.
Recently, the central banks of the two countries green-lit the use of local currencies (Rupees and Dirhams) for cross-border transactions including trade, remittance, and investment flows. As per Businessline, India’s popular Unified Payments Interface (UPI) has been linked to the UAE’s instant payment system Aani, which is expected to benefit the Indians living in the Gulf country. Moreover, India’s Rupay cards can also be used in the UAE.
Defence and security cooperation between the two countries has witnessed a boost in recent years. The defence ties have evolved to incorporate training, joint naval and air exercises, high-level exchanges and conducting an Annual Defence Dialogue.
New Delhi and Abu Dhabi also engage in multilateral cooperation. They are part of the India-Middle East Economic Corridor (IMEC) to improve global connectivity.
With India’s support, the UAE joined the Shanghai Cooperation Organisation (SCO) as a dialogue partner last May. The India-UAE-France trilateral initiative was launched in 2023. India and the UAE also coordinate on the I2U2 initiative with the United States and Israel. The UAE has also joined the BRICS grouping.
While Indian companies have a presence in the UAE, some top enterprises from the Gulf country do business in India.
The two nations plan to expand technological ties by building digital infrastructure, research and development (R&D) for energy security and trade focusing on green hydrogen and energy storage, as per The Hindu.
India and the UAE have displayed their strong relationship on the world stage multiple times. PM Modi alone has made seven trips to the UAE in his 10-year tenure. He was invited to inaugurate a Rs 700-crore BAPS temple in Abu Dhabi this February, which is built on the land gifted by UAE ruler Sheikh Mohamed bin Zayed Al Nahyan.
Abu Dhabi’s Crown Prince in India
The Crown Prince of Abu Dhabi will pay tribute to Mahatma Gandhi at Rajghat on Monday (September 9).
Besides interacting with PM Modi on a “wide range of areas of bilateral cooperation”, Sheikh Khaled will also call on President Droupadi Murmu.
He and PM Modi could discuss the wider outcomes of Israel’s ongoing war with Hamas in Gaza, reported NDTV.
A historic visit begins as HH Shk Khaled bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi arrives in 🇮🇳. Shk Khaled was received by Hon. @CimGOI @PiyushGoyal followed by a ceremonial welcome. @MEAIndia @IndianDiplomacy pic.twitter.com/IyizxHYBb3
— India in UAE (@IndembAbuDhabi) September 8, 2024
On the second day of his official trip, the Crown Prince will be in Mumbai to take part in a business forum, which will also mark the presence of business leaders from the two nations.
As per a Reuters report, India and the UAE could review their trade agreement – CEPA – in the wake of concerns by Indian industry over a sharp rise in imports of precious metals from the Gulf country. Sources told the news agency that the Crown Prince was unlikely to participate in the review talks.
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The significance of the trip
As this is Sheikh Khaled’s first official visit to India as the Crown Prince, it assumes all the more importance.
His participation in the business forum in Mumbai highlights the growing trade and investment partnership between the two nations, reported Financial Express. The visit signifies the increasing strategic importance of the ties between India and the UAE.
According to the MEA, “India and (the) UAE share historically close and friendly ties. In recent years, the Comprehensive Strategic Partnership between India and (the) UAE has deepened in a wide range of areas including political, trade, investment, connectivity, energy, technology, education, and culture. The Crown Prince’s visit will further reinforce strong India-UAE bilateral relations and open avenues for partnership in new and emerging areas.”
With inputs from agencies