Strategic dialogue to cement relations

With His Highness Sheikh Mohamed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces as the Chief Guest at the Republic Day parade in New Delhi on Thursday, UAE-India ties will scale to new heights.
Relations between the two countries have been growing stronger by the year, with a phenomenal increase in bilateral trade and investments. The UAE is now India's third largest trade partner, and bilateral trade between the two added up to nearly $30 billion between April and October 2016.
While bilateral trade amounted to nearly $50 billion in 2015-16, both governments are confident that it will double to $100 billion in a mere three years.
The Indian Council for Research on International Economic Relations has been tasked with conducting a study on specific steps that could be taken to deepen the country's trade and commerce engagement with the UAE.
"The report is expected to be presented to us by March," Rita Teaotia, the Indian Commerce Secretary, told Khaleej Times in Delhi. "We intend to further refine our policies and directions based on its findings."
Currently, the UAE ranks behind China and the US as India's largest trade partner, but many analysts in India believe that the UAE could emerge as a leader in a few years.
Increasingly, relations between the two nations are expanding beyond trade and into investments. India is one of the fastest-growing economies in the world and is expecting billions of dollars of overseas investments into its infrastructure sector.
Prime Minister Narendra Modi was the first Indian premier to visit the UAE after nearly 35 years in August 2015. The two countries decided to set up a $75 billion UAE-India Infrastructure Investment Fund to finance India's huge demand for money to build infrastructure.
India needs about $1.5 trillion in investments over the next 10 years to build the massive infrastructure needed in areas like roads and highways, railways, ports and airports and power plants.
The country has an ambitious plan to build 10,000 km of highways this year, besides developing several new roads. Indian Railways has also undertaken an ambitious modernisation programme.
The country's ports and airports are also undergoing modernisation to meet the growing expansion in trade. 
The two countries are expected to sign more than a dozen agreements - covering both economic and political issues - during the Crown Prince's three-day visit to India, which began on Tuesday.
According to the Indian Ministry of External Affairs, the first 'strategic dialogue' between the two countries - who had earlier decided to elevate their relations to a 'comprehensive strategic partnership' - saw large delegations from ministries and government departments of the two countries interact in Delhi this week.
The two governments will be focusing on key trade and investment issues in areas including energy security and renewable energy, defence and security, electronics, information technology
and space.
The two sides will also be signing several memoranda of understanding (MoUs) during the high-level UAE visit to India. They cover areas including infrastructure, maritime transport, maritime training, agriculture and SMEs and innovation.
India's Ministry of Road Transport and Highways aims to increase cooperation with UAE's Federal Transport Authority for land and marine systems. The agreements also cover marine transport and training.
In agriculture, the two countries aim to promote best practices to improve farm productivity and agricultural technology to ultimately strengthen food security.
The MoU on SMEs and innovation is expected to help small enterprises in both countries to explore the two markets and enhance their business.
India and the UAE have had historical trade and business ties dating back to the previous century. Recent years have seen a dramatic increase in the relationship as businesses from both countries have ventured out and established ties.
A large number of Indians, estimated to be over 2.5 million, are working in the UAE and remitting funds home every month. They provide skills and manpower in virtually all sectors of the UAE economy. With the huge demand for funds in India to build and develop new infrastructure, companies, trusts and affluent individuals in the UAE are investing significant amounts in India. Last year, estimates showed that they invested almost $10 billion into India.
The growing ties between the two countries have also led to a significant increase in air connectivity. More than 1,000 flights operate between the two nations on a weekly basis, linking dozens of cities in India with the major airports in the UAE.
Analysts expect trade relations between the two countries to surge over the coming years as the two nations cement their economic ties.
The two governments will be focusing on key trade and investment issues in areas including energy security and renewable energy, defence and security, electronics, information technology and space.

• India
• UAE