Sheikh Khaled bin Mohamed’s official trip to India holds great importance for UAE-India bilateral relations

HH Sheikh Khaled bin Mohamed is on his first official visit to India. He is being accompanied by several ministers from the UAE government and a business delegation. The trip is of great importance for the deepening UAE-India bilateral relations.

Upon his arrival on September 8, India’s Commerce and Industry Minister Piyush Goyal received His Highness. There is a lot on the agenda. Sheikh Khaled and Indian Prime Minister Narendra Modi are holding discussions on a number of areas of bilateral cooperation.

The Crown Prince of Abu Dhabi is also scheduled to meet President Droupadi Murmu. The broader consequences of the Israel-Hamas fighting raging on in Gaza since October 7 could also be a part of discussions, according to NDTV.

Historical ties made stronger by high-level bilateral visits

On the second day of his official trip to India, Sheikh Khaled is expected to be in Mumbai to take part in a business forum – to be attended by business leaders from both countries. His Highness’s participation highlights the deepening bilateral trade and investment ties.

The UAE and India share historically close and friendly relations. Both countries established bilateral ties in 1972. The traditionally strong relations have received a substantial boost through the exchange of high-level bilateral visits from time to time.

PM Modi alone has made seven trips to the Emirates in his 10-year tenure. He visited the Gulf state in February and inaugurated a Baps Hindu Temple in the capital. The temple has been built on a piece of land gifted by UAE President HH Sheikh Mohamed bin Zayed.

Promising UAE-India bilateral trade numbers

India is the UAE’s second-largest trading partner after China. For India, the UAE is one of the top export destinations. Both countries inked a high-profile Comprehensive Economic Partnership agreement in 2022 to enhance trade and reach the target of $100 billion by 2030.

Since then, the bilateral trade have touched historic highs from $72.9 billion in FY22 to $84.5 billion in FY23. The UAE is also one of the top investors in India in terms of foreign direct investments. India and the UAE have also signed a Bilateral Investment Treaty (BIT).

Both countries share centuries-old maritime trade. Besides trade, the 3.5 million-strong Indian diaspora in the Gulf state – its largest expatriate group – is an integral part of development of the Emirati economy and society.

UAE and India engaging in substantial multilateral cooperation

In a recent development, the central banks of the UAE and India facilitated the use of local currencies (Dirhams and Rupees) for cross-border transactions, including trade and remittance and investment transfers.

India’s popular UPI has been linked to the UAE’s instant payment system, offering great help to the millions of Indians in the Gulf state. In addition, India’s Rupay cards can also be used in the UAE. But there is certainly more than just financial transactions.

The UAE and India have been seeing an improving defence and security cooperation. The bilateral defense relations have evolved to incorporate training, joint naval and air exercises, high-level exchanges and conducting an annual defence dialogue.

Both countries also engage in multilateral cooperation. They are part of the India-Middle East-Europe Economic Corridor. The India-UAE-France trilateral initiative came into existence last year. The countries are also part of the I2U2 forum and the BRICS grouping.