Question- 1. India-UAE ties in recent times have grown beyond crude oil to include strategic and economic relations. Explain potential benefits of strong ties with UAE.
Answer: UAE is one of India’s strongest allies in the Gulf region. India has cultivated strategic and trade ties with UAE, including the signing of the Free Trade Pact between the two countries.
- Energy security
UAE provides India with crude oil, which provides energy security to India.
Indian expats living in UAE have helped in establishing cultural ties between the two countries.
- Agro products
India is the largest supplier of agricultural products to UAE. Considering UAE’s import dependency, India has great potential.
Potential benefits of stronger ties
Indian origin citizens living in UAE are the biggest remittance senders after the US. India earns significant foreign revenues through remittances.
- Bilateral investment
Indians living in UAE are the largest investors in UAE and also India. Potential future investments include real estate, energy, healthcare and Information technology.
- Defence technology
UAE is the hub for defence technology. Many companies have their companies in the kingdom. Indian companies have potential to collaborate with these companies for joint production.
Thus, ties between India and UAE can reach great heights if both parties focus on area of priority. The future looks bright.
Tags: GS 2 (International relations)