Two landmark agreements were signed, marking a new era in India-UAE relations were inked during the official visit of Sheikh Khalid bin Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi, to Mumbai.
The first agreement focused on the launch of the India-UAE Virtual Trade Corridor (VTC) and MAITRI interface, while the second centered on a strategic pact for global collaboration in the critical minerals supply chain.
India-UAE Virtual Trade Corridor (VTC) and MAITRI Interface
The VTC will be an integral part of the India-Middle East-Europe Economic Corridor (IMEEC), significantly enhancing trade between the two nations. The corridor aims to streamline business processes by reducing administrative barriers, lowering logistics and transport costs, and improving the ease of doing business.
The MAITRI (Master Application for International Trade and Regulatory Interface) interface complements the VTC by integrating various Indian operational portals with their UAE counterparts. This system will boost efficiency, simplify regulatory compliance, and enhance transparency. As a unified, secure, and scalable platform, MAITRI is set to revolutionize cross-border trade operations, further strengthening economic ties between India and the UAE.
Strategic Pact on Critical Minerals
Another critical outcome of Sheikh Khalid’s visit was the signing of a Memorandum of Understanding (MoU) between International Resources Holding RSC LTD and a consortium of Indian energy firms, including Oil India Ltd, Khanij Bidesh India Ltd, and ONGC India Ltd. This agreement is aimed at enhancing cooperation in the exploration of critical minerals in third countries.
These minerals are crucial for powering the global digital economy, and this MoU will help India bolster its supply chain resilience, ensuring a steady flow of essential resources necessary for its technological and economic growth.
Strengthening India-UAE Trade Relations
Trade between India and the UAE reached an impressive $84 billion in 2023-24, making the UAE India’s third-largest trading partner. With the UAE serving as India’s second-largest export destination, the relationship between the two nations continues to flourish.
Investment from the UAE into India has also been robust, with a total of $20-21 billion invested between 2000 and 2023, including $18.5 billion in Foreign Direct Investment (FDI). The UAE’s long-term commitment to investing $75 billion in India’s infrastructure further solidifies its strategic partnership with the country.
These agreements, sealed during Sheikh Khalid’s visit, underscore the growing importance of the India-UAE relationship, setting the stage for enhanced trade, investment, and cooperation in critical sectors.
