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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.

 

AnswerUAE 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.

India-UAE ties

  • Energy security
    UAE provides India with crude oil, which provides energy security to India.
  • Cultural
    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

  • Remittances
    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)
By: Raghunandan

Updated on 01 Jul 2022 |   Added on .01 Jul 2022  |  by admin