India-UAE Trade Agreement

The friendly relations between India and the UAE are many years old. It is a fact that the role played by Malayalees in the growth of the UAE has been enough to warm that friendship even more. Therefore, any agreement with the UAE will be sufficient to stimulate economic growth in Kerala as well. During the three-hour visit of UAE President Sheikh Mohammed bin Zayed Al Nahyan to India, five important agreements and memorandums of understanding, including a strategic defence partnership, were signed. In addition, the two countries made seven new declarations of cooperation. The meeting between the UAE President and Prime Minister Narendra Modi holds special significance in the context of recent global and West Asian developments.

This importance was underscored by the way Prime Minister Modi personally received the UAE President at the Delhi Palam Airport, setting aside protocol. The two then travelled in the same car to the Prime Minister's official residence on Lok Kalyan Marg. The signing of important agreements and MoUs took place after bilateral talks between the two leaders. Members of the Dubai and Abu Dhabi royal families, UAE ministers and business leaders were present. The agreements signed include increasing India-UAE trade to $200 billion by 2032. The expansion will be in the defence and energy sectors. This includes defence industry cooperation, technology transfer, and cooperation in cyberspace and counter-terrorism.

In addition, a Letter of Intent (LoI) was signed between the UAE space agency and the Indian National Space Promotion and Authorisation Centre for space industry development and commercial cooperation. As part of this, India will be ready to set up a space launch facility in the UAE. The UAE and the Gujarat government also signed a memorandum of understanding to develop a special investment zone in Dholera, Gujarat. This massive project includes an international airport, a green port, a smart township, a pilot training school, aircraft maintenance and repair, and railway connectivity.

The agreement signed between Abu Dhabi's state-owned oil company ADNOC and Hindustan Petroleum Corporation Limited will see the sale of 0.5 metric tonnes of LNG to India by 2038. The agreement to increase food and vegetable exports from India will also create an environment for increased income for those involved in this related business in Kerala. The two countries also announced mutual cooperation such as setting up an AI supercomputer cluster in India, investing in India to increase data center capacity, and setting up a digital data embassy as part of the meeting. The state government should also consider projects that can be started in Kerala based on these agreements.