Abu Dhabi Crown Prince’s visit sees India-UAE strengthen trade ties
New Delhi, Sep 10: Crown Prince of Abu Dhabi, Sheikh Khalid bin Mohamed bin Zayed Al Nahyan further strengthened the economic ties between India and the UAE.
During his visit to Mumbai on the second day of his visit to India, his maiden visit to the country sealed two major initiatives – the India-UAE Virtual Trade Corridor (VTC) and MAITRI Interface, and a Memorandum of Understanding (MoU) on Critical Minerals Supply Chain Collaboration – with their signing, officials of the MEA said.
India-UAE Virtual Trade Corridor (VTC) and MAITRI Interface
The first major agreement centres around the establishment of the India-UAE VTC, driven by the MAITRI interface.
This initiative is a key component of the broader India-Middle East-Europe Economic Corridor (IMEEC), designed to streamline trade processes between the two nations.
The VTC will reduce administrative bottlenecks, lower logistics and transport costs, and make it easier to conduct business across India and the UAE.
The MAITRI (Master Application for International Trade and Regulatory Interface) interface will connect Indian and UAE operational platforms, simplifying trade processes.
MAITRI is designed to enhance efficiency, utilise advanced technologies, simplify regulatory compliance, and boost transparency.
“Its scalable and secure structure aims to serve as a critical tool for improving trade connectivity between the two nations,” a statement issued by the Ministry of External Affairs said.
IMEEC
The India-Middle East-Europe Economic Corridor (IMEEC) is an ambitious infrastructure project aimed at redefining global trade routes.
First introduced at the G20 Summit in Delhi in September 2023, India and the UAE took a leadership role in its development by signing an Inter-Governmental Framework Agreement in February 2024 to implement the corridor.
MoU on Critical Minerals Supply Chain Collaboration
Another highlight of the Crown Prince's visit was the signing of an MoU focused on enhancing the global supply chain for critical minerals.
This agreement was signed between International Resources Holding RSC LTD and a consortium of Indian companies, including Oil India Ltd, Khanij Bidesh India Ltd, and ONGC India Ltd.
Critical Minerals
Critical minerals are vital to sustaining the modern digital economy, and this partnership is expected to bolster the resilience of the supply chain for these essential resources.
The MoU outlines cooperation in mineral exploration in third countries, ensuring secure access to these resources, which are crucial for both nations' technological advancements.
India and the UAE’s trade partnership has flourished, with bilateral trade reaching USD 84 billion in 2023-24, taking the UAE as India’s third-largest trading partner, following China and the United States.
The UAE is also India’s second-largest export destination, with nearly USD 36 billion in exports during the same period.
In terms of investments, UAE investments in India between 2000 and 2023 are estimated at USD 20-21 billion, including USD 18.5 billion in Foreign Direct Investment (FDI).
The UAE was the sixth-largest FDI investor in India in 2023-24 and has committed USD 75 billion to India's infrastructure sector over time.
These new agreements – both the VTC and the Critical Minerals Supply Chain Collaboration are step forward in fostering deeper economic cooperation further cementing the growing trade and investment ties between the two nations.
