On 9 June 2022, the Union Cabinet of Ministers chaired by the Prime Minister, Shri Narendra Modi, approved the proposal for signing a bilateral Memorandum of Understanding (MoU) between India and the United Arab Emirates (UAE) on Cooperation in the field of Industries and Advanced Technologies.
The MoU followed a resolution to boost up joint ventures in the area of defence after India and UAE convened a series of meetings focused on energy transition. Sultan Al Jaber, the Minister of Industry and Advanced Technology of UAE visited New Delhi on May 26.
India UAE bilateral relation has matured over the years since the creation of UAE in 1971 and the two countries share social, political and economical linkages. Importantly, the UAE is the eighth largest investor in India with an estimated investment of $18 billion whereas Indian investments in the Middle East federation stand at an estimated USD 85 billion.
Growing India-UAE economic and commercial relations contribute to the stability and strength of a rapidly diversifying and deepening bilateral relationship between the two countries. India-UAE bilateral trade, valued at US$ 180 million (Rs.1373 crore) per annum in the 1970s has increased to USD 60 billion (Rs.4.57 lakh crore) making the UAE, India’s third-largest trading partner for the year 2019-20 after China and the US.
India and the UAE have already entered into a bilateral “Comprehensive Economic Partnership Agreement” (CEPA) recently in February 2022 and this agreement, in the light of the recent CEPA has the potential to boost bilateral trade between the two countries from USD 60 billion (Rs.4.57 lakh crore) to USD 100 billion (Rs.7.63 lakh crore) over the next five years.
The MoU focuses on developing and strengthening industries in both countries through advanced technology transfer, deployment of smart and innovative technologies in industries and bilateral investment. Employment generation is also highly likely across both the economies and may attract prospective Indian businesses for expanding overseas and doing business in UAE.
Both countries agreed on continuous monitoring and progress assessment on key priority areas in bilateral science, technology, and innovation projects. Cooperation in the area of standardisation would also be a part of and include metrology, conformity assessment, accreditation, and halal certification.
This MoU will likely increase research and innovation in all areas of bilateral cooperation, especially in the areas of Artificial Intelligence, Industry 4 smart technologies, Renewable Energy, advanced Healthcare and Life sciences on successful implementation of the same. This would also result in increased growth potential in the advanced technology sectors, increased domestic output, higher exports, and a lowering in imports. This would also inspire Indian investors to invest in technology company formation in Dubai UAE.
This MoU on advanced technology would also result in meeting the objective of Atmanirbhar Bharat, a phrase used and popularized by the Hon’ble Indian Prime Minister in making India a self-reliant nation.
India has always been a crucial and integral part of the international technology research and development ecosystem and over the years, has been working with countries and organisations to encourage the development of economic and scientific relationships and pave the way for advanced technology company formation in India.
In the light of this MoU, the trade between India and the UAE could potentially be increased from USD 60 billion (Rs.4.57 lakh crore) to USD 100 billion (Rs.7.63 lakh crore) over the next five years.
An official statement from the Indian government said, “The MoU aims at strengthening and developing industries in both nations through investments, technology transfer and the deployment of key technologies in industries.” The statement also highlighted, “This is likely to generate employment across the economy.”