Context

• India and the United Arab Emirates (UAE) reaffirmed their commitment to strengthening bilateral defence cooperation during the 13th India-UAE Joint Defence Cooperation Committee (JDCC) meeting.

About the News

• The two sides agreed to enhance military training cooperation and discussed their respective training requirements. 
• India offered to provide customised training courses tailored to the UAE’s needs. They also agreed to cooperate on maritime security through sharing of information.
• In a bid to explore new avenues of defence collaboration, both countries held discussions on training cooperation, defence industrial partnerships, and Service-to-Service engagements.
• A Memorandum of Understanding was signed between the Indian Coast Guard and the UAE National Guard to establish a framework for enhanced cooperation in search and rescue operations, pollution response, anti-piracy efforts, and related maritime security domains.

About India-UAE Relations

Diplomatic

• India and the United Arab Emirates (UAE) established diplomatic relations in 1972. 
• UAE opened its Embassy in Delhi in 1972 & India opened its Embassy in Abu Dhabi in 1973.
• The traditionally strong bilateral relations enjoyed by India & UAE received impetus with the visit of PM Modi to UAE on 16-17 August 2015 that marked the beginning of a new strategic partnership between the two countries.

Economic & Commercial Relations

• India and UAE have shared trade links through the centuries.
• Trade, which was dominated by traditional items such as dates, pearls and fishes, underwent a sharp change after the discovery of oil in the UAE (oil exports began from Abu Dhabi in 1962).
• The real impetus, however, started after Dubai positioned itself as a regional trading hub by the early 1990s and about the same time, the economic liberalisation process started in India.
• Bilateral trade in FY 2021-22 was about US$ 72 billion. UAE is India’s third largest trade partner and second largest export destination.
• UAE’s FDI in India has increased over the past few years and currently stands at over $12 billion.

Technology Partnerships

• India and the UAE have signed a number of digital innovation, technology partnerships, and also plans for ISRO and UAESA to cooperate on missions like the Red Moon mission. 
• The Emirates has offered “golden visa” residency permits for doctors, engineers, PhD scholars and specialists in high-end technology fields such as artificial intelligence (AI), Big Data, virology and epidemiology, and brought over the former ISRO chief K. Radhakrishnan to their space agency.

Indian Community

• The Indian expatriate community of approximately 3.4 million is the largest ethnic community in UAE constituting roughly about 35% of the country’s population.

Challenges in India-UAE relationship

• Migration and Labor Issues: The UAE's Kafala system has been criticized for contributing to labor abuses and forced labor.
• The Kafala system is a sponsorship-based labor system in Gulf countries, where employers have control over foreign workers' legal status, including their visas and employment conditions.
• Energy Pricing and OPEC Disagreements: As an OPEC member, the UAE supports policies that may not align with India's stance as a major oil importer, especially when it comes to controlling oil prices. 
• Air Services Agreement Disputes: The UAE wants to increase the number of flights and destinations to India, but India has limited the expansion to protect its domestic airlines.
• Regional Crises: The war in Gaza and Houthi attacks in the Red Sea have affected some regional cooperation, including the India-Middle East Corridor.
• India-Iran vs. UAE-China Dynamics: India's strategic relationship with Iran, especially over regional security and energy interests, can sometimes clash with the UAE's growing ties with China.

Conclusion

• India-UAE relations have evolved into a strategic partnership, marked by strong trade ties and cooperation. However, challenges like geopolitical balancing, energy debates, and labor concerns must be navigated carefully.