India and UAE Strengthen Defense Ties with Strategic Agreement
India and UAE sign Letter of Intent to boost defense partnership amid regional tensions.
Photo by Markus Winkler
Key Facts
Agreement: India-UAE Bilateral Strategic Defence Partnership
Trade target: $200 billion by 2032
LNG deal: HPCL to purchase from ADNOC
LNG volume: 0.5 MMPTA over 10 years
LNG start date: 2028
UPSC Exam Angles
GS Paper II: Bilateral relations, international agreements
GS Paper III: Energy security, trade agreements
Potential for questions on India's West Asia policy, CEPA, defense cooperation
Visual Insights
India-UAE Strategic Partnership
Map showing the locations of India and the UAE, highlighting key areas of cooperation.
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India-UAE Bilateral Trade and LNG Deal
Key statistics related to India-UAE trade and the LNG agreement.
- Bilateral Trade Target by 2032
- $200 Billion
- LNG Purchase Agreement
- 0.5 MMTPA
- LNG Agreement Duration
- 10 Years
Significant increase from current levels, reflecting deepening economic ties.
Secures India's energy needs and diversifies import sources.
Long-term commitment ensuring stable LNG supply.
More Information
Background
The India-UAE relationship has ancient roots, with trade and cultural exchanges dating back centuries. The modern diplomatic relationship was established in 1972, shortly after the formation of the UAE. However, the relationship remained largely transactional, focused on trade and remittances, until the early 21st century.
A significant turning point was the 'Look West' policy adopted by India, which aimed to strengthen ties with countries in the Gulf region. This policy recognized the strategic importance of the Gulf, not only for energy security but also for economic and security cooperation. The Comprehensive Strategic Partnership agreement signed in 2017 marked a new phase, expanding cooperation beyond traditional areas to include defense, security, and counter-terrorism.
Latest Developments
In recent years, the India-UAE relationship has witnessed rapid diversification and deepening. The Comprehensive Economic Partnership Agreement (CEPA), implemented in 2022, is a landmark agreement aimed at boosting bilateral trade and investment. Beyond trade, there is increasing cooperation in areas such as renewable energy, technology, and space exploration.
The UAE has also emerged as a significant investor in India's infrastructure sector. Looking ahead, the relationship is expected to further strengthen, with a focus on innovation, digital economy, and sustainable development. Both countries are also exploring opportunities for joint ventures in third countries, particularly in Africa.
The evolving geopolitical landscape, including the Abraham Accords, has also created new opportunities for cooperation.
Practice Questions (MCQs)
1. Consider the following statements regarding the Comprehensive Economic Partnership Agreement (CEPA) between India and the UAE: 1. It aims to eliminate tariffs on a majority of goods traded between the two countries. 2. It includes provisions for cooperation in the services sector, including financial services and tourism. 3. It was signed in 2017 during the establishment of the Comprehensive Strategic Partnership. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: A
Statements 1 and 2 are correct. The CEPA aims to eliminate tariffs on a majority of goods and includes cooperation in the services sector. Statement 3 is incorrect as the CEPA was implemented in 2022.
2. With reference to the evolving defense cooperation between India and the UAE, consider the following statements: 1. The recent 'Letter of Intent for a Bilateral Strategic Defence Partnership' aims to replace existing defense agreements with a new framework. 2. India and the UAE have previously collaborated on joint military exercises, focusing on maritime security. 3. The defense partnership is solely focused on countering terrorism and does not include broader strategic objectives. Which of the statements given above is/are NOT correct?
- A.1 only
- B.3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: C
Statement 1 is incorrect as the Letter of Intent aims to build upon existing cooperation, not replace it. Statement 3 is incorrect as the partnership includes broader strategic objectives beyond counter-terrorism. Statement 2 is correct.
3. Consider the following statements regarding India's 'Look West' policy: 1. It was initiated in the early 1990s to strengthen ties with countries in the Gulf region. 2. A primary objective was to diversify India's energy sources and reduce dependence on a single region. 3. The policy led to increased cooperation in areas such as trade, investment, and security. Which of the statements given above is/are correct?
- A.1 and 2 only
- B.2 and 3 only
- C.1 and 3 only
- D.1, 2 and 3
Show Answer
Answer: D
All three statements are correct. The 'Look West' policy aimed to strengthen ties with the Gulf region, diversify energy sources, and increase cooperation in various sectors.