India and UAE: Collaboration in Nuclear Energy and Advanced Technologies

Economic Achievements and Trade Unification:

Bilateral Trade: Over $100 billion (five years ahead of schedule); India’s third-largest trading partner following China and the US; Primarily due to the Comprehensive Economic Partnership Agreement (CEPA), which features the Virtual Trade Corridor, a critical component of the India–Middle East–Europe Economic Corridor (IMEEC).

Investment Momentum: UAE's investments in India have totaled $23 billion, with $4.5 billion pledged for 2024 alone.

The Bilateral Investment Treaty, completed in 2023, has established a consistent legal structure for this influx of capital.

Jaywan Card: The UAE's national payment card is based on India's rupee card infrastructure.

UPI-Aani Integration: Its goal is to facilitate cross-border digital transactions and CBDC compatibility (Planned for November 2025).

Cooperation in Defense and Technology

Nuclear Energy as a Developing Sector: The UAE now produces 25% of its electricity from nuclear sources (5.6 GW) and targets to double this capacity by the year 2030.

The Partnership for Accelerating Clean Energy (PACE)—which includes the US, UAE, and India—together with French partnerships, is establishing nuclear energy as a fundamental element of clean energy collaboration.

India's involvement in the Barakah Nuclear Power Plant — the Arab world's first multi-unit nuclear site — highlights the UAE's trust in India's nuclear proficiency.

Defense Collaborations: Defense partnership has escalated to the secretary level, incorporating joint military drills such as Desert Cyclone, Desert Flag, and the India-France-UAE Trilateral Exercise.

Indian firms are becoming more involved in prominent defense exhibitions like IDEX and the Dubai Airshow, participating in initiatives like Tejas fighter parts and drone technologies.

Learning, Cosmos, and Essential Minerals

Educational Partnerships: These were enhanced with the initiation of IIT Abu Dhabi’s PhD program, the Dubai campus of IIM Ahmedabad, and IIFT Dubai, which further align human capital development with bilateral objectives.

Collaborative initiatives are in progress in precision medicine and space exploration, utilizing India's human resources and the UAE's infrastructure.

Critical Minerals: Agreement in 2024 to ensure global supply chains for lithium, cobalt, and rare earth elements.

Green Hydrogen: Establishing a transnational value chain, aiming for production goals of 5 MMT (India) and 1.4 MMT (UAE) by 2030.

Connectivity and Renewable Energy Pathways

India–Middle East–Europe Economic Corridor (IMEEC) Initiative: It aims for an uninterrupted movement of containers, information, and energy via linked grids and undersea cables.

I2U2 (India, Israel, UAE, US) Initiative: Progress is being made on food parks in Gujarat and renewable energy initiatives aimed at 60 GW in Gujarat and Rajasthan.

Geopolitical Placement and Engagement with Africa

Utilizing the UAE’s Global CEPA Network: To access the UAE’s 25 additional CEPAs, improving market entry and production capabilities—particularly for energy-heavy industries.

Africa as the Next Frontier: The UAE joining BRICS and efforts like Bharat Africa Setu provide India a strategic pathway to grow in African markets, with the UAE acting as a crucial gateway.

Cultural Significance: The BAPS Hindu temple in Abu Dhabi serves as a strong emblem of religious acceptance and common principles, highlighting the cultural richness of the India-UAE connection.

Issues & Difficulties That Must Be Mitigated

Geopolitical Challenges: India’s effort to maintain neutrality during the Israel-Gaza conflict and the UAE’s shifting position in West Asia poses diplomatic hurdles.

Trade & Economic Issues: Although CEPA has been effective, commerce is still heavily reliant on specific sectors such as gems and oil. Expanding exports in technology, pharmaceuticals, and renewable energy remains an ongoing effort.

Regulatory Gaps & Anomalies: A gap in the India-UAE Economic Partnership Agreement (EPA) enabled traders to import gold masquerading as platinum alloy, resulting in a revenue loss of ₹1,700 crore.

Silver imports from the UAE soared 647 times in a single year, triggering worries over value-add compliance and potential abuse of GIFT City’s lenient regulations.

Conclusion

A prime example of how two complementary economies can create robust supply chains, promote sustainable development, and lead collaboration in nuclear and cutting-edge technologies is the developing strategic partnership between India and the United Arab Emirates. Both nations are establishing themselves as international centres of trade and innovation in a world that is changing quickly thanks to their coordinated policies and shared visions.