In News:

• The 14^th India-UAE Joint Commission Meeting (JCM) was co-chaired by EAM Jaishankar and UAE Foreign Minister Sheikh Abdulla bin Zayed Al Nahyan in Abu Dhabi.
• The two countries agreed to intensify economic cooperation in a range of areas while reiterating commitment to achieving the goal of $100 billion of bilateral trade in the next five years.

What’s in Today’s Article:

• India – UAE Bilateral Relationship

India – UAE Bilateral Relationship

Political relations

• India and the UAE established diplomatic relations in 1972. Since then, their relationship has grown manifold.
• In January 2017, India and UAE signed a Comprehensive Strategic Partnership Agreement.
• The strong bilateral relations have received impetus from time-to-time with exchange of high-level visits from both sides.
  • In February 2019, UAE invited India as the "Guest of Honour” to address the Inaugural Plenary 46th Session of the Organisation of Islamic Cooperation.
  • PM Modi paid his third visit to the UAE in August 2019. He was awarded the highest civilian award of UAE called 'Order of Zayed'.
  • Crown Prince of UAE visited India for the second time in January 2017 as the Chief Guest at India’s Republic Day celebrations.
• The foundation stone laying ceremony for the first traditional Hindu Temple in Abu Dhabi was held in April 2019.
• In February 2022, PM Modi and Crown Prince of Abu Dhabi HH Sheikh Mohammed bin Zayed Al Nahyan held a Virtual Summit.
  • Both the leaders issued a Joint Vision Statement – “Advancing the India and UAE Comprehensive Strategic Partnership: New Frontiers, New Milestone”.

Trade Relation

• 
• The UAE was India’s second-biggest goods export market until FY20, behind only the US. China pipped it in FY21 when the pandemic caused severe disruptions in trade.
• The UAE is currently India’s third-largest trading partner with bilateral trade in FY20 valued at $59 billion.
• The UAE is also India’s second-largest export destination after the US (approximately $29 billion in FY20).

Comprehensive Economic Partnership Agreement (CEPA) between India and UAE

• In September 2021, both the countries have started negotiations for a mutually-beneficial CEPA.
• India-UAE CEPA was signed in February 2022 in New Delhi during the India-UAE Virtual Summit.
  • In March 2022, India announced the unveiling of the CEPA with the UAE.
• Coverage
  • It covers almost all the tariff lines dealt in by India (11,908 tariff lines) and the UAE (7581 tariff lines)
• Preferential access to goods
  • CEPA provides for an institutional mechanism to encourage and improve trade between the two countries.
  • India will benefit from preferential market access provided by the UAE on over 97 % of its tariff lines which account for 99% of Indian exports to the UAE in value terms.
  • India will also be offering preferential access to the UAE on over 90% of its tariff lines, including lines of export interest to the UAE.
• Trade in Services
  • India has offered market access to the UAE in around 100 sub-sectors.
  • On the other hand, Indian service providers will have access to around 111 sub-sectors from the 11 broad service sectors.
  • Both sides have also agreed to a separate Annex on Pharmaceuticals to facilitate access of Indian pharmaceuticals products.
    • For the first time, there is a separate section of pharma to facilitate the export of Indian generic medicines.

Investment

• The UAE is the eighth-largest investor in India, having invested $11 billion between April 2000 and March 2021.
• Investment by Indian companies in the UAE is estimated to be over $85 billion.

NRI Remittances

• The annual remittances made by the large Indian community in UAE (estimated to be around 3.3 million) amount to US$ 17.56 billion for year 2018.

Energy Cooperation

• In 2017, the Abu Dhabi National Oil Company (ADNOC) and the Indian Strategic Petroleum Reserves Ltd. (ISPRL) signed an MoU to establish a strategic crude oil reserve in the city of Mangalore (Karnataka).
• ADNOC is also involved in exploring the possibility of storing its crude oil at ISPRL’s underground oil storage facility at Padur in Karnataka.
• A consortium led by ONGC including Indian Oil and Bharat Petro Resources, has been awarded a 10 per cent stake in the Lower Zakum Concession.