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The United Arab Emirates (UAE) and India have restated their commitment to an innovative economic corridor that would employ both rail and maritime networks to join Europe with India through vital Middle East routes. This agreement, made during the official visit of Prime Minister Narendra Modi to the Gulf State, is a clear manifestation of a shared vision for improved regional connectivity endorsed by both the US and the EU.
According to a framework agreement released by the Indian foreign ministry, this is a giant step in the direction of strengthening economic cooperation between the two countries. Although not much is known about its exact terms of reference, both parties expressed enthusiasm for using this partnership as a tool for promoting better regional connectivity.
This proposed corridor was first mentioned at last year’s G20 meeting in New Delhi in September. It would serve as a cross-country transportation system starting from India, then crossing the Arabian Sea into the United Arab Emirates, and through Saudi Arabia, Jordan, and Israel before reaching Europe. Even though the official communiqués do not explicitly list other participating countries, it still implies that these two nations have old historical trade ties, emphasizing their long-standing trading relationship.
The ongoing regional complexities of the extended conflict in Gaza, which has hampered Israel from integrating with its Arab neighbors, make this historic agreement even more significant. Although possible international infrastructure plans for transportation already include China’s Belt and Road Initiative, this pledge by India and the UAE means a serious effort to actualize an economic corridor that could disrupt them. After shipments passing through the Red Sea were attacked by the Houthi movement in Yemen recently, there is greater urgency for alternative trade routes since it has resulted in heightened regional instability. To emphasize, these attacks demonstrate how sea lanes can be easily compromised and why diverse trade avenues are indispensable. They reportedly retaliated against Israeli operations in Gaza. Aside from the trade corridor deal, investment treaties between the two nations have been signed on digital infrastructure, trade facilitation, and power interlinks, thereby bolstering their economic relationship. Prime Minister Modi's visit speaks volumes about how strategic this country is to India as one of her major trading partners, whose relations are not based on just economics alone.
The importance of this trip is that it will create bilateral relations and increase cooperation between India and UAE; hence, Mr. Modi will interact with Indian people living there as well as address them during the Dubai summit. The first stone Hindu temple in the Middle East has come up, marking a real milestone in the ties that are developing between these two countries, both culturally and otherwise.
Thank you.
Regards,
Kautilya, IBS Mumbai.
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