Vibrant Gujarat Global Summit 2024: What growing ties with UAE mean for India?

The 10th edition of the Vibrant Gujarat Global Summit was held in state capital Gandhinagar from January 10 to January 12, 2024. The theme of the 10th Summit, inaugurated by Prime Minister Narendra Modi, was ‘Gateway to the Future’. The Summit was organised after a gap of five years. The first edition of the Vibrant Gujarat Summit was held in 2003 when the current Indian PM was the Chief Minister of Gujarat. 

The Vibrant Gujarat Summit 2024 was significant for more than one reason. There were over 60,000 delegates from 140 countries and 35 partner countries. MOUs for investment to the tune of over Rs 26 lakh crore were signed during the 2024 Summit. One of the significant highlights of the summit was the participation of UAE President Sheikh Mohamed bin Zayed Al Nahyan as Chief Guest. 

PM Modi, during his address, underscored India’s growing global clout while also articulating his economic vision. While commenting on the importance of the UAE President’s presence at the summit, he said, “The participation of UAE President Sheikh Mohammed bin Zayed in this summit is a matter of great joy for us. His presence as the chief guest at Vibrant Gujarat Summit is a symbol of the ever-strengthening relations between India and UAE”.  

India’s economic relations with the UAE

A UAE-India Business Summit under the theme "Two Nations, One Vision”, was held on the sidelines of the Vibrant Gujarat Summit. A UAE-India Comprehensive Economic Partnership Agreement (CEPA) council was also set up with the objective of strengthening economic ties between both countries. While commenting on the importance of the UAE-India CEPA council, the UAE Minister of State for Foreign Trade, Dr Thani bin Ahmed Al Zeyoudi said, “..The Council is a testament to the shared vision of creating a dynamic and resilient economic relationship, driving sustainable growth, and prosperity for both our nations.” Similarly, India’s Commerce Minister Piyush Goyal, while addressing the UAE-India Business Summit, pointed to the multi-layered nature of the bilateral economic relationship.  

Ever since the signing of the CEPA in 2022, bilateral trade between the UAE and India has risen significantly. In 2022-2023, the bilateral trade value was estimated at $84.9 billion. Both countries have set a target of $100 billion for bilateral trade between them. The UAE’s investments in India have increased in recent years and the former is likely to make significant investments in India’s infrastructure sector. 

MOUs were signed between both sides in food processing, energy and healthcare. The MOUs in food processing and renewable energy sync in with I2U2 (US, Israel, UAE and India), a US-led initiative also dubbed as Middle Eastern Quad. 

UAE-India ties beyond the bilateral relationship  

The visit of the UAE President underscores the strengthening ties between India and the UAE given the growing economic convergence between both countries.  

From a geopolitical dimension, it is interesting to note that both India and the UAE are part of the US-driven I2U2 on the one hand, while both countries have also maintained robust economic ties with Russia – despite US Sanctions in the aftermath of the Russia-Ukraine conflict. The UAE was amongst the five countries which recently entered the China dominated BRICS+ grouping (touted by some as an alternative to G20). In recent years, the UAE’s growing proximity with China has resulted in strain between Abu Dhabi and Washington.

It would also be pertinent to point out here that both India and the UAE have been at the forefront pushing for de-dollarization due to US sanctions on Russia. In July 2023, both countries had signed an agreement for the use of local currencies for cross-border transactions and in December 2023, India made its first payment in rupees for the purchase of crude oil from the UAE. 

In conclusion, the presence of high level political and business delegates from different countries at the Vibrant Gujarat Summit highlights the growing importance of state investor summits. The presence of the UAE President at the 10th Vibrant Gujarat Summit and the various agreements signed on the sidelines of the summit underscore the strengthening of ties between India and the UAE.