India and UAE Strengthen Economic Ties with Key Agreements
India and the United Arab Emirates (UAE) have signed significant agreements to enhance their economic and strategic partnership. These deals focus on securing critical mineral supply chains and collaborating on nuclear plant operations, marking a new chapter in bilateral cooperation.
Critical Mineral Supply Chains
A Memorandum of Understanding (MoU) has been signed between India and the UAE to secure critical mineral supply chains. This agreement involves cooperation in mineral exploration in third countries, aiming to enhance supply chain resilience. The initiative is part of the broader India-Middle East-Europe Economic Corridor framework.
The MoU is expected to boost exports and investments between the two nations. The Gem and Jewellery Export Promotion Council (GJEPC) reports strong participation and rising demand from the Middle East at events like the International Gem and Jewellery Show (IGJS) in Dubai, supported by the India-UAE Comprehensive Economic Partnership Agreement (CEPA).
Nuclear Plant Operations Collaboration
Another significant MoU has been signed for collaboration on the operation and maintenance of nuclear plants. This agreement, signed by officials from the Nuclear Power Corporation of India Limited and the Emirates Nuclear Energy Corporation, came during a visit by Abu Dhabi Crown Prince Sheikh Khaled bin Mohamed bin Zayed Al Nahyan to India.
The UAE, which started commercial operations of its first nuclear power plant in 2021, aims to diversify its economy and attract foreign investment through such collaborations. The country is considering building a second nuclear power plant to further reduce its reliance on fossil fuels.
These agreements reflect the deepening economic and strategic relationship between India and the UAE. Other developments, such as the reduced local remedies period for UAE investors in India and the introduction of India’s Unified Payment Interface (UPI) in the UAE, further highlight the growing financial integration between the two countries.
