Strengthening India-UAE Energy Partnership
India and the United Arab Emirates (UAE) have recently strengthened their ties in the energy sector by signing four key agreements. These deals were finalised during Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan’s visit to India, where he met with Prime Minister Narendra Modi.
Key Agreements Signed
- Long-term LNG Supply Agreement: The Abu Dhabi National Oil Company (ADNOC) and the Indian Oil Corporation Ltd (IOCL) have agreed on a long-term supply of 1 million metric tonnes of liquefied natural gas (LNG) per year.
- Crude Oil Storage: ADNOC and India Strategic Petroleum Reserve Ltd (ISPRL) signed a deal to explore more opportunities for crude oil storage in India, expanding on their existing collaboration since 2018.
- Nuclear Energy Collaboration: The Emirates Nuclear Energy Company (ENEC) and India’s Nuclear Power Corporation Ltd (NPCIL) entered into a Memorandum of Understanding (MoU) to cooperate on the operation and maintenance of the Barakah Nuclear Power Plant. They will also focus on sourcing nuclear materials from India.
- Production Concession Agreement: A production agreement was made for Abu Dhabi’s onshore Block 1, allowing the Urja Bharat joint venture to extract crude oil and contribute to India’s energy security.
Strategic Goals
These agreements reflect the growing strategic partnership between India and the UAE, which has evolved since the Comprehensive Economic Partnership Agreement (CEPA) was signed in February 2022. Both countries are looking to expand their collaboration in areas such as green hydrogen, critical minerals, and artificial intelligence. Bilateral trade has also grown, reaching $85 billion in 2022-23, and the UAE continues to be a significant investor in India.
Key Aspects Of The India-UAE Relationship
Diplomatic Ties
Diplomatic Relations: Established in 1972, with strategic partnerships formed in 2015.
Embassies: Both nations have embassies in each other’s countries.Economic & Commercial Partnership
Trade Volume: Bilateral trade reached $72 billion in FY 2021-22.
UAE as a Trade Partner: The UAE is India’s third-largest trade partner and second-largest export destination.
Foreign Direct Investment (FDI): UAE is among the top 10 sources of FDI for India.
CEPA Agreement: Signed to boost economic cooperation between both nations.Food Security And Investment
Food Trade: India, the world’s second-largest food producer, exports a significant amount to the UAE.
Investment in Agriculture: Initiatives like the Agriota platform link Indian farmers to UAE food companies. The UAE committed $2 billion to food parks and food security corridors in India.Cultural And Technology Exchange
Cultural Ties: India plans to build a BAPS Hindu temple in the UAE, and Indian media is widely accessible in the country.
Technology: Cooperation between ISRO and UAESA, especially for space missions like the Red Moon mission, highlights technological collaboration.Defence and Security
Military Exercises: India and the UAE conduct joint military drills, such as Exercise Desert Flag, Desert Eagle-II, and naval exercises like In-UAE BILAT.
Strategic Dialogue: The UAE participates in defence dialogues and plays a role in the Indian Ocean Region dialogue.Mediation Role
UAE’s Mediation Efforts: The UAE has mediated between India and Pakistan, facilitating meetings between top officials from both sides.
Indian Community
Expatriates: There are approximately 3.4 million Indians living in the UAE, forming the largest ethnic group in the country.
Challenges In The India-UAE Relationship
Labour Issues
Some reports have surfaced about the exploitation of Indian migrant workers in the UAE.
Trade Imbalance
India has faced a trade deficit with the UAE, with a gap of $18 billion in 2021.
Geopolitical Concerns
The UAE’s relationship with Pakistan and its neutral stance on the Kashmir issue have caused concerns in India.
Regional Rivalry
The UAE’s involvement in the Gwadar port in Pakistan and Chabahar port in Iran has raised competitive concerns for India.
Indira Gandhi International Airport Rises In Global Aviation
Delhi’s Indira Gandhi International Airport (IGIA) has achieved a significant milestone by securing the 24th position among the top 50 most internationally connected airports, according to the Official Airline Guide (OAG) report. This ranking highlights the airport’s growing prominence as a key global aviation hub.
Key Points From The OAG Report
- Global Ranking: IGIA ranked 24th among the world’s top 50 most connected international airports.
- Top Spot: London’s Heathrow Airport (LHR) claimed the first position, followed by Kuala Lumpur International Airport (KUL) in Malaysia.
- OAG’s Role: OAG is a leading data platform in the travel industry, providing insights into the world’s aviation connectivity.
Achievements Of IGI Airport
- NetZero Carbon Certification: IGI Airport became the first airport in India to be certified as NetZero Carbon Emission compliant.
- Four Runways: It remains the only airport in India equipped with four runways, enhancing its capacity and operational efficiency.
- Elevated Cross Taxiway: In 2023, IGIA inaugurated India’s first elevated cross taxiway, further improving air traffic management.
Growth Of India’s Aviation Sector
India has become the third-largest domestic aviation market globally, following the USA and China. The country’s aviation infrastructure has seen impressive growth, with the number of operational airports doubling from 74 in 2014 to 148 by April 2023, significantly improving air travel accessibility.
Key Initiatives In Indian Aviation
Airport Expansion
The increase in operational airports has boosted accessibility and air travel convenience across India.
Carbon Neutrality
The Ministry of Civil Aviation (MoCA) is actively working towards achieving carbon neutrality and net-zero carbon emissions at airports throughout the country.