·The Hindu·15 marks·250–350 wordsIR

India's engagement with the UAE has evolved from a transactional labour relationship to a Comprehensive Strategic Partnership. Trace this evolution and assess India's strategic interests in the Gulf.

In this answer
  1. Tracing the evolution
  2. India's strategic interests in the Gulf

For decades the India–UAE relationship rested on two pillars — imported oil and exported labour. Since 2015 it has matured into a Comprehensive Strategic Partnership (2017) spanning trade, defence, energy and technology, making the UAE India's principal gateway to the Gulf.

Tracing the evolution

  • Transactional phase: Post-1970s ties were built on crude oil imports and the migration of Indian workers, with the UAE hosting India's largest overseas expatriate community and generating major remittance inflows — engagement was episodic and low on political content.
  • Strategic upgrade (2015–17): High-level visits reset the relationship, elevating it to a Comprehensive Strategic Partnership covering defence exercises, counter-terrorism cooperation and sovereign investment in Indian infrastructure.
  • Economic institutionalisation (2022): The CEPA, signed 18 February 2022, was India's first FTA with a Gulf nation, targeting US$100 billion in goods trade [1]; it entered into force on 1 May 2022 [2].
  • Consolidation: Merchandise trade nearly doubled from US$43.3 bn (FY21) to US$83.7 bn (FY24), with non-oil trade at US$57.8 bn — over half the basket [4] — crossing US$100 bn in FY25 [3]. Regular CEPA Joint Committee meetings and the Modi–Sheikh Mohamed bin Zayed bilateral at the G7 Evian Summit (June 2026) show sustained political investment [5].

India's strategic interests in the Gulf

  • Energy security: The Gulf supplies the bulk of India's crude and LPG needs.
  • Diaspora welfare and remittances: Amid West Asian instability, evacuation preparedness and expatriate safety are core diplomatic tasks [5].
  • Trade diversification: CEPA is the template for the ongoing India–GCC engagement, expanding non-oil exports [4].
  • Connectivity and maritime security: Safe Persian Gulf sea lanes and corridor projects link India to Europe.
  • Strategic autonomy: Simultaneous ties with Gulf states, Israel and Iran sustain India's multi-alignment.

The UAE relationship thus illustrates India's shift from a manpower supplier to a co-investor and security stakeholder in the Gulf. Deepening CEPA implementation, energy partnerships and diaspora protection frameworks will anchor West Asia firmly within India's extended neighbourhood.

Sources

  1. 1India and UAE sign the historic CEPA aimed at boosting goods trade to US$100 billion over next five years — PIBCEPA signed 18 February 2022; first FTA with a Gulf nation; US$100 bn goods target
  2. 2India-UAE CEPA enters into force — PIBentry into force on 1 May 2022
  3. 3India–UAE Convene Third CEPA Joint Committee Meeting; Bilateral Trade Crosses USD 100 Billion — PIBtrade crossing US$100 bn in FY 2024-25; Joint Committee institutional mechanism
  4. 4India-UAE Comprehensive Economic Partnership Agreement completes 3 years of signing — PIBtrade growth from US$43.3 bn (FY21) to US$83.7 bn (FY24); non-oil trade US$57.8 bn
  5. 5PM Modi holds extensive bilateral engagements with global leaders at G7 Summit in Evian — Akashvani News (Prasar Bharati)Modi–Sheikh Mohamed bin Zayed bilateral on energising the Comprehensive Strategic Partnership amid West Asian instability
Practice
5 questions on this article
Check the answer for each question, or reveal all at once.
Practice MCQs →

More from this note

More on IR