26 Jan 2026·Source: The Hindu

3 min

International RelationsEconomyEDITORIAL

India-UAE Relations: A Strong Partnership Amidst Global Geopolitical Shifts

India and UAE strengthen ties with focus on trade, defense, and nuclear cooperation.

Photo by Manuel Torres Garcia

Editorial Analysis

The author emphasizes the strength and stability of India-UAE relations, highlighting the deepening cooperation across various sectors and the mutual importance the countries accord to each other. He suggests that this partnership offers a stable pillar amid regional uncertainties.

Main Arguments:

The India-UAE relationship has evolved comprehensively since the signing of the Comprehensive Strategic Partnership Agreement in 2017.
The UAE's interest in India's infrastructure is evident through investments in projects like the Special Investment Region in Dholera, Gujarat.
The Comprehensive Economic Partnership Agreement (CEPA) has boosted bilateral trade, and initiatives like Bharat Mart at Jebel Ali aim to further enhance economic ties.

Conclusion

The author concludes that the India-UAE partnership, anchored in trust and shared interests, offers a stable pillar amid regional uncertainty. He suggests that India must continue to carefully recalibrate its relationships, guided by strategic autonomy and multi-alignment, while avoiding entanglement in regional rivalries.

Policy Implications

The editorial implies that India should continue to strengthen its strategic autonomy and multi-alignment approach in its foreign policy, particularly in the West Asia region. It suggests that fostering strong partnerships like the one with the UAE can provide stability amid regional uncertainties.

India and the UAE have a strong and stable relationship, marked by deepening cooperation across various sectors. UAE President Sheikh Mohamed bin Zayed Al Nahyan's visit to India underscores this robust partnership. Key outcomes include a defense cooperation framework, joint space initiatives, a $200 billion bilateral trade target, and collaboration in AI and nuclear energy.

The UAE's interest in India's infrastructure is evident through investments in projects like the Special Investment Region in Dholera, Gujarat. The Comprehensive Economic Partnership Agreement (CEPA) has boosted bilateral trade, and initiatives like Bharat Mart at Jebel Ali aim to further enhance economic ties. Both countries unequivocally condemned terrorism.

The India-UAE partnership offers stability amid regional uncertainties.

Key Facts

India-UAE target: $200 billion in bilateral trade by 2032

CEPA: Led to a 37% rise in bilateral trade since FY23

India's exports to UAE grew by 28% last year

UAE investing in Dholera Special Investment Region

UPSC Exam Angles

GS Paper 2: Bilateral Relations, International Agreements

Economic Cooperation and Trade Agreements

Strategic Partnership and Security Cooperation

Visual Insights

India-UAE Strategic Partnership

Map showing key locations related to India-UAE cooperation, including trade hubs and investment regions.

Loading interactive map...

📍New Delhi📍Abu Dhabi📍Dubai📍Dholera, Gujarat

India-UAE Bilateral Trade Statistics

Key statistics showcasing the growth in India-UAE trade and investment.

Bilateral Trade Target: $200 Billion
India's Exports to UAE (2025): $31.3 Billion
UAE's Investments in India (2025): $18 Billion

More Information

Background

The historical roots of India-UAE relations can be traced back centuries, primarily through maritime trade and cultural exchanges. Before the formation of the UAE in 1971, India maintained close ties with the individual emirates. The discovery of oil in the UAE significantly altered the dynamics, leading to increased economic interdependence.

Post-independence, India recognized the UAE soon after its formation, establishing formal diplomatic relations in 1972. The relationship evolved from primarily economic to encompass strategic and security dimensions, especially in the context of regional security concerns and counter-terrorism efforts. The large Indian diaspora in the UAE has also played a crucial role in strengthening bilateral ties, acting as a bridge between the two nations.

Latest Developments

Recent developments in India-UAE relations extend beyond trade and investment to include deeper strategic cooperation. The establishment of a Joint Task Force on Investment reflects a focused approach to channel investments into key sectors. Furthermore, collaboration in renewable energy, particularly solar and wind power, has gained momentum, aligning with global climate goals.

The increasing focus on cybersecurity cooperation is another significant development, given the growing digital economies of both countries. The exploration of Rupee-Dirham trade mechanisms aims to reduce reliance on the US dollar and promote financial autonomy. Looking ahead, the partnership is expected to expand into areas like healthcare, education, and space exploration, fostering a multi-faceted relationship.

Frequently Asked Questions

1. What is the India-UAE CEPA, and what impact has it had on bilateral trade?

The Comprehensive Economic Partnership Agreement (CEPA) is a trade agreement between India and the UAE. Since FY23, it has led to a 37% rise in bilateral trade.

Exam Tip

Remember the CEPA percentage increase for prelims.

2. What is the target for bilateral trade between India and the UAE by 2032?

The target for bilateral trade between India and the UAE by 2032 is $200 billion.

Exam Tip

Note this figure for prelims; it shows the scale of the partnership.

3. Why is the India-UAE relationship considered important amidst global geopolitical shifts?

The India-UAE partnership offers stability amid regional uncertainty. Their strong relationship, marked by deepening cooperation across various sectors, provides a buffer against global instability.

4. What are the key areas of cooperation between India and the UAE, beyond trade?

India and the UAE are cooperating in defense, space initiatives, AI, and nuclear energy. The UAE is also investing in India's infrastructure, such as the Special Investment Region in Dholera, Gujarat.

•Defense cooperation framework
•Joint space initiatives
•Collaboration in AI and nuclear energy
•UAE investment in Dholera Special Investment Region

5. What is Bharat Mart at Jebel Ali, and what is its purpose?

Bharat Mart at Jebel Ali aims to enhance economic ties between India and the UAE. It serves as a platform to promote Indian products and businesses in the region.

6. How does the India-UAE relationship impact regional security, considering their joint condemnation of terrorism?

The unequivocal condemnation of terrorism by both India and the UAE strengthens regional security. It sends a strong message against extremism and promotes stability in the region.

7. What are the potential benefits and drawbacks of increased nuclear cooperation between India and the UAE?

Increased nuclear cooperation can provide India with access to advanced technology and energy resources. However, it also raises concerns about nuclear proliferation and the potential misuse of nuclear technology.

8. Why has there been a recent focus on strengthening India-UAE relations?

Recent developments in India-UAE relations extend beyond trade and investment to include deeper strategic cooperation. This includes the establishment of a Joint Task Force on Investment and collaboration in renewable energy.

9. What are the recent developments in renewable energy cooperation between India and the UAE?

India and the UAE are increasingly collaborating in renewable energy, particularly solar and wind power, aligning with global climate goals.

10. What is the historical background of India-UAE relations?

The historical roots of India-UAE relations can be traced back centuries through maritime trade and cultural exchanges. Post-independence, India recognized the UAE soon after its formation in 1971.

Practice Questions (MCQs)

1. Consider the following statements regarding the India-UAE Comprehensive Economic Partnership Agreement (CEPA): 1. It aims to eliminate tariffs on 90% of products traded between the two countries. 2. It includes provisions for enhanced cooperation in digital trade and investment. 3. It came into effect in January 2022. 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

Statement 1 is CORRECT: The India-UAE CEPA aims to eliminate or reduce tariffs on a significant portion of goods traded between the two countries, targeting approximately 90% of products. Statement 2 is CORRECT: The CEPA includes provisions for enhanced cooperation in areas such as digital trade, investment promotion, and intellectual property rights. Statement 3 is INCORRECT: The India-UAE CEPA came into effect on May 1, 2022, not January 2022. This agreement has significantly boosted bilateral trade between the two nations.