UAE and India: Walking along the same path

The changing geopolitical paradigm has seen a greater emphasis on soft power, and India is taking full advantage of this shift. At the recent climate talks in Paris the country became a spokesperson of sorts for developing nations, highlighting common but differentiated responsibilities.

“Common because there’s just one globe and we all have a stake in its future, yet differentiated because there are some countries who’ve already progressed developmentally through using their carbon resources,” explains Anurag Bhushan, Indian Consul General to Dubai.

He ascribes India’s success in rallying other nations to its influence gained through being recognised as a cradle of civilisation, an emerging economic powerhouse and a nation with a rich and varied culture.

“Equally, India has been a source of inspiration”, he tells GN Focus. “Our independence started a whole cycle among colonised countries, inspiring a lot of them to aspire to independence themselves.”

The Indian diaspora has also played a “critical and constructive role”. According to UN estimates, of the 244 million people, or 3.3 per cent of the world’s population, who don’t live in their native country, Indians make up the largest group. Some 16 million of the 1.2 billion population are scattered across the globe.

Bhushan says the UAE is home to about 2.6 million Indian citizens. They’re employed mainly in real estate, construction and related fields, while a large number are also investors. Banking and other commercial sectors are also very popular.

Age-old ties

The relationship between the two countries “dates back thousands of years”, he says. “Because of the proximity between the two nations, there have been cultural exchanges through the centuries. Traces of each other’s art and culture can be seen in monuments, music and cuisine.

“Trade began with the barter of pearls for cotton and dry fruit for grains.”

Today, India is the UAE’s second-largest trading partner, and it is India’s third-largest partner. Bilateral trade stands at more than $59 billion (Dh216.7 billion). India’s biggest exports here include pearls, semi-precious stones, pre-metals and imitation jewellery, while it imports mainly mineral fuels and oils.

The two countries hope to grow bilateral trade to nearly $100 billion in five years.

A recent HSBC Global Connections report predicts the UAE’s position as a regional trading hub will see it become India’s top export destination by 2030. The lifting of sanctions against Iran is expected to further boost figures, with companies using the UAE as a re-export hub. The country’s geographic position will also be a benefit as India expands its trade and investment footprint in the region and in Africa. “The UAE is quickly becoming a global transit point and gateway to India, Africa and Asia,” says Bhushan.

Strengthening the relationship

“The business ties [between India and the UAE] have grown stronger out of centuries of exchange of culture, commodities and ideas,” he adds.

This point came to the fore when Indian Prime Minister Narendra Modi visited the UAE last year. “This visit was a defining moment for our relationship, especially as it came after more than three decades.”

The countries released a joint statement highlighting not only areas of opportunity but also a road map to achieve these goals.

“We are now working to progress on those fronts,” explains the Consul General.

The countries cooperate on a range of topics, including security and cybersecurity, anti-terrorism, defence, law enforcement, humanitarian assistance, conflict resolution and culture. The UAE also supports India’s candidature for a permanent seat on the UN Security Council.

“Increased inward investment from the UAE could help India create the conditions for growth in the long run,” says Bhushan.

Regular business forums facilitate this process. “The underlining theme of the meeting with businessmen was that investments should benefit the common man,” T.P. Seetharam, Indian Ambassador to the UAE, said after one such event.

Future collaboration

The UAE has indicated it would increase investments in India to $75 billion. The country is keen to get involved in various projects aimed at developing India.

Modi visited Masdar City in Abu Dhabi and could use the UAE’s expertise as India sets about building 100 Smart Cities. The UAE’s focus on innovation also dovetails with the country’s Make in India and Digital India strategies, providing scope for increased synergy.

Modi’s visit also paved the way for further interaction. India’s Ministers of Commerce and Finance visited straight after, and the UAE’s Foreign Minister reciprocated.

“The UAE is a country with a great past and an equally great future,” says Bhushan. “I feel the UAE is going to develop into a great business platform for the Indian business community to spread their work throughout the Gulf and into Africa and beyond.”

Travel easy

With an extensive and ever-expanding flight network between the UAE and India, travel between the two countries is growing continually.

About 1.6 million Indian travellers visited the UAE last year, based on hotel check-ins. The bulk — about 1.1 million — came to Dubai. Consulate officials stress the total figure could be much higher, as a large number of Indian citizens will stay with friends and relatives. Most (38 per cent) were on business, travelling for meetings, incentives, conferences and events. Some 36 per cent were leisure travellers, while 12 per cent stopped over in the UAE.

The Dubai Consulate alone issued 66,310 visas to Indians in 2015. As people from most countries can apply online for visas to India, figures for UAE residents travelling to India are not readily available.