India and the United Arab Emirates (UAE) have enjoyed a close and robust bilateral relationship that has evolved significantly over the years. The ongoing visit of India’s External Affairs Minister, Dr. S. Jaishankar, from January 27–29, 2025, is another testament to the deep-rooted partnership between the two nations. This visit holds great importance as it aims to review existing collaborations and chart a course for enhanced cooperation.
A Comprehensive Strategic Partnership
India and the UAE elevated their ties to a Comprehensive Strategic Partnership (CSP) in 2017. This partnership underscores the shared interests of both nations in areas such as trade, energy, investments, defense, and technology. During this visit, Dr. Jaishankar is set to engage with the UAE leadership to review these collaborations and explore new avenues for growth.
The minister will also deliver the keynote address at the inaugural Raisina Middle East conference in Abu Dhabi, a landmark event that reflects India’s growing strategic and geopolitical engagement in the Gulf. This signals India's intent to deepen its role as a regional partner to the UAE and other Gulf Cooperation Council (GCC) nations.
Trade and Economic Partnership
The UAE is India's third-largest trading partner, with bilateral trade reaching $85 billion in 2023-24, an impressive rise from $73 billion in 2021-22. The Comprehensive Economic Partnership Agreement (CEPA), signed in February 2022, has been pivotal in this growth. CEPA has not only slashed tariffs on over 80% of goods but also bolstered trade in services, which exceeded $20 billion in the past year alone.
Key export sectors benefiting from CEPA include jewelry, textiles, and engineering goods. India has also seen a surge in imports of energy products and precious metals from the UAE, reinforcing the trade complementarity between the two nations. The goal of achieving $100 billion in bilateral trade by 2027 appears increasingly attainable.
Investment as a Pillar of Growth
The UAE is one of the largest investors in India, with cumulative foreign direct investment (FDI) inflows of $18 billion as of 2024. Sectors such as real estate, infrastructure, renewable energy, and logistics have attracted substantial Emirati investments. The Abu Dhabi Investment Authority (ADIA) and other sovereign wealth funds have been instrumental in this regard.
India, in turn, has been actively investing in the UAE, particularly in logistics, manufacturing, and retail. Indian startups, supported by the UAE’s innovation-friendly policies, are increasingly making their presence felt in the Gulf.
Energy and Climate Cooperation
Energy security is a cornerstone of India-UAE ties. The UAE is India’s fourth-largest supplier of crude oil, accounting for nearly 10% of its imports. Moreover, both countries are collaborating on renewable energy projects. As members of the International Solar Alliance, India and the UAE have committed to advancing solar energy deployment globally.
In January 2023, the two nations launched the “India-UAE Hydrogen Task Force,” aimed at scaling up green hydrogen production and addressing climate change. This initiative aligns with India’s ambitious goal of becoming a global hub for green hydrogen by 2030.
Defense and Security Collaboration
Defense cooperation has grown steadily, with both nations conducting joint military exercises and collaborating on maritime security. In December 2024, India and the UAE held their first-ever trilateral naval exercise with France in the Arabian Sea, symbolizing their commitment to maintaining regional stability.
Counter-terrorism and cyber-security are also areas of strategic convergence. Both nations have exchanged intelligence to combat terrorism and cyber threats, ensuring mutual security.
Diaspora as a Strategic Asset
The Indian diaspora, numbering over 3.5 million, is the largest expatriate community in the UAE and plays a pivotal role in strengthening bilateral ties. In 2023, Indian workers in the UAE remitted over $20 billion, significantly contributing to India’s economy. The Indian community has also been instrumental in sectors like healthcare, education, and technology in the UAE.
The Raisina Middle East: A Platform for Strategic Dialogue
Dr. Jaishankar’s keynote at the Raisina Middle East hosted by the Observer Research Foundation reflects India’s increasing engagement with the region on global and regional challenges. This dialogue provides a platform to discuss critical issues such as energy security, climate change, and the evolving geopolitical landscape. It also positions India as a key player in shaping the future of the Gulf region.
Emerging Avenues of Cooperation
Technology and Startups: With the UAE’s focus on digital transformation and India’s burgeoning tech ecosystem, both nations are well-positioned to lead in areas like AI, blockchain, and fintech.
Food Security: In May 2024, India and the UAE operationalized the "Food Corridor" project, aimed at ensuring food security for the UAE by leveraging Indian agricultural resources.
Space Exploration: India’s space agency ISRO and the UAE Space Agency have been collaborating on satellite launches and space exploration, signaling a new dimension of partnership.
The visit of Dr. Jaishankar to the UAE marks a new chapter in India-UAE relations. It is an opportunity to build on the successes of the past and lay the groundwork for future cooperation. With shared values, strategic interests, and complementary strengths, India and the UAE are poised to further their Comprehensive Strategic Partnership, setting an example of mutual respect and benefit in a rapidly changing global order.
As the Raisina Middle East dialogue unfolds, the world will watch how these two nations not only strengthen bilateral ties but also contribute to regional and global stability. For India and the UAE, the future is bright, and the possibilities are endless.