INDIA-UAE Virtual Summit: Prime Minister Narendra Modi and Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan recently held a Virtual Summit.

Key Highlights:

• Both leaders expressed deep satisfaction at the continuous growth in bilateral relations in all sectors.
• A joint vision statement was issued by them.

Joint Vision Statement:

• PM Modi and the Crown Prince of issued a joint vision statement - "Advancing the India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone".
• The Statement establishes a roadmap for a future-oriented partnership between India and UAE and identifies focus areas and outcomes.
• The shared objective is to promote new trade, investment and innovation dynamic in diverse sectors, including economy, energy, climate action, emerging technologies, skills and education, food security, healthcare and defence and security.

India-UAE CEPA:

• A major highlight of the Virtual Summit was the signing and exchange of the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
• CEPA was by Minister of Commerce and Industry Shri Piyush Goyal and Minister of Economy of UAE, H.E. Abdulla bin Touq Al Marri in the virtual presence of the two Leaders.
• The Agreement will provide significant benefits to Indian and UAE businesses, including enhanced market access and reduced tariffs.
• It is expected that the CEPA will lead to increase in bilateral trade from the current USD 60 bn to USD 100 bn in the next 5 years.

Significance of CEPA:

• The CEPA makes the UAE the preferred partner in the GCC.
• If a commodity is acceptable to the UAE, then objections to it by other Gulf Cooperation Council (GCC ) members become less defensible, because with the India-UAE agreement, Indian goods will flow to the other GCC countries as the UAE has no customs barriers

Other highlights:

• The two Leaders also released Joint Commemorative Stamp on the occasion of 75th anniversary of India’s independence and 50th year of UAE’s foundation.
• Two MOUs signed between Indian and UAE entities were also announced during the Summit.
• These are -
  • MOU between APEDA and DP World & Al Dahra on Food Security Corridor Initiative and
  • MOU between India’s Gift City and Abu Dhabi Global Market on cooperation in financial projects and services.
• Two other MOUs – one on cooperation in Climate Action and the other on Education have also been agreed between the two sides.

India-UAE Relations:

• India and United Arab Emirates (UAE) enjoy strong bonds of friendship which are founded on millennia-old cultural, religious and economic intercourse betweenthe two regions.
• People-to-people contacts and barter trade between the tworegions have existed for centuries.
• The relationship flourished after the accession of H.H. Sheikh Zayed Bin Sultan Al Nahyan as the Ruler of Abu Dhabi in 1966 and subsequently with the creation of the UAE Federation in 1971.
• Both sides have made sincere efforts to improve relations in all fields.

Bilateral Relations:

• In recent years, bilateral relations between India and the UAE (United Arab Emirates) have strengthened in all areas, and both sides have embarked upon a comprehensive strategic partnership
• The UAE is India’s third largest trading partner, and second largest export destination.
• Bilateral trade between India and the UAE stood at $43.3 billion in 2020-21. Exports were $16.7 billion, and imports, driven by oil, pushed the balance in favour of the UAE at $26.7 billion in 2020-21.

Additional info:

• Gulf Cooperation Council (GCC) has FTAs with the European Free Trade Association (EFTA) comprising Iceland, Norway, Lichtenstein, Switzerland, and Singapore.
• The agreement with the UAE is going to be the second FTA (Free Trade Agreement) signed by the Modi government after a similar pact was signed with Mauritius last April.
• India is negotiating a raft of other FTAs with the Australia, UK, the EU, Israel and Canada.