The three-day visit to India by Sheikh Mohamed bin Zayed, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the Armed Forces, has elevated the already friendly and fruitful relationship between the two countries. The visit successfully built on foundations set during the historic trip to the UAE by Indian prime minister Narendra Modi last August.
The two parties signed far-reaching agreements in various areas, including trade and investment, security, counterterrorism, defence production, space exploration, renewable energy, IT and electronics, infrastructure and cultural cooperation. In a joint statement, the two leaders said they looked forward to the early signing of what they termed “a comprehensive strategic partnership” that will help both countries develop further in these key areas.
As we have argued before, this partnership is natural and mutually beneficial. As we said when Shiekh Mohammed departed for India, there are strong historical ties between the two countries, and given current economic conditions the time is ripe for a deepening of the relationship.
India’s recent economic performance has been impressive. The International Monetary Fund forecasts that India will maintain an annual growth rate of more than 7.5 per cent in the next two years – the highest rate among the world’s major economies. Its manufacturing sector has been particularly active.
The UAE is a dynamic hub for global business. Many companies here are seeking opportunities to invest in other markets, and India is an obvious choice. We do, however, recognise the challenges involved in doing business with India. Bloated bureaucracy and outdated laws remain hurdles to the type of foreign direct investment needed to elevate India’s economy to its full potential. The pro-business Modi administration has identified these problems and is shown a willingness to carry out structural reforms. The government is also addressing corruption and its underinvestment in infrastructure.
This visit has demonstrated the extent of cooperation and the willingness to upgrade our economic relationship with India. There is every reason to believe that the target of increasing the value of bilateral trade by 60 per cent by 2020 is achievable.
