PM Modi’s 2024 India-UAE Visit – Key Agreements

In February 2024, India’s Prime Minister Narendra Modi visited the United Arab Emirates. During the important diplomatic visit, India and UAE inked several big agreements to improve future business and technology partnerships.

Why Does This Matter?

The UAE is currently India’s third biggest trade partner, with over $85 billion in annual exchanges. Historically too, UAE companies have invested almost $17 billion into India. The UAE is the seventh-largest source of historical Foreign Direct Investment (FDI) for India, with a total of $16.67 billion.  Hence both nations want to further strengthen economic ties.

Bilateral Investment Deal

The two countries signed a bilateral investment treaty that makes it easier for Indian and UAE firms to invest in each other’s markets. This pact clears obstacles and provides assurances to boost future cross-border investments. As rising Asian economic powers, it is in the mutual interest for India and UAE to synergize their business relationship.

Middle-East Trade Corridor

Leaders also inked a deal to develop the India-Middle East Economic Corridor (IMEC). This mega project aims to build both rail and shipping links connecting India to West Asia and Europe. For Indian exports to reach Europe faster, this corridor would create an alternative route that avoids rival China.

Linking Digital Payment Systems

India’s famous Unified Payments Interface (UPI) platform will now be connected with the UAE’s domestic digital payments application ‘Aani’. This would enable easier cross-border money transfers and boost usage of such systems.

Agreement on inter-linking domestic debit/credit cards – RuPay (India) with JAYWAN (UAE) will enhance the universal acceptance of RuPay across the UAE.

Partnerships in Futuristic Technology

Through cooperation pacts on digital infrastructure and AI, both countries will also join hands on cutting-edge solutions in 5G connectivity, cloud computing, semiconductor fabrication etc. Guidance will be provided to Indian startups looking to expand in Dubai.

Cultural Cooperation

The Cooperation protocol between the National Archives of the two countries will shape extensive bilateral cooperation in this field including restoration and preservation of archival material.

MoU for cooperation in the field of heritage and museums would foster engagement between the two countries aimed at supporting of the Maritime Heritage Complex at Lothal, Gujarat.

Ahead of the visit, RITES Limited signed agreement with Abu Dhabi Ports Company and Gujarat Maritime Board with Abu Dhabi Ports Company. These would help in building port infrastructure and further enhance connectivity between the two countries.

Category: International / World Current Affairs