India – UAE Bilateral Ties

Editorial Analysis for UPSC - India – UAE Bilateral Ties

India – UAE Bilateral Ties


  • The Prime Minister is attending two summits this week, one is the G7 Summit and other being the bilateral summit in Abu Dhabi with the UAE President Sheikh Mohammed bin Zayed Al-Nahyan


  • The G7 Summit is given more significance than the bilateral summit in Abu Dhabi but the numbers explain the significance of UAE for India.
  • Except USA, no G7 country comes close to the UAE as India’s trading partner, exports market, Indian diaspora base and their inward remittances.
  • It is UAE which has signed a Comprehensive Economic Partnership Agreement (CEPA) with India and not any other G7 country.

Importance of CEPA for India –

Trade-in Goods:
  • India will profit from the UAE’s preferential market access, particularly for all labor-intensive industries.
  • They include sectors such as gemstones and jewellery, textiles, leather, footwear, sporting goods, plastics, furniture, goods made of wood and agriculture, engineering products, medical devices, and automobiles.
Trade-in Services:
  • India and the UAE have both granted one another access to their respective markets for a variety of services.
  • Services like “business services,” “communication services,” “construction and related engineering services,” “distribution services,” “education services,” “environmental services,” “financial services,” “health-related and social services,” “tourism and travel-related services,” “recreational cultural and sporting services,” and “transport services,” among others.
Pharmaceuticals :
  • In order to make it easier for people to access Indian pharmaceutical products, both parties have also agreed to a pharmaceuticals annex.
  • This annex will facilitate automatic registration and marketing authorization within 90 days for products that meet certain requirements.
Way Forward:
  • Excellent bilateral connections between India and the UAE are supported and nourished by shared cultural and civilizational affinities, frequent high-level political exchanges, and strong people-to-people ties. These links are historical and deeply founded.
  • The Comprehensive Economic Partnership Agreement (CEPA) is a great move to leverage the opportunities for Indian firms in the Gulf market.

Source The Hindu