India and the United Arab Emirates (UAE), signed five memorandum of understandings (MoUs) or agreements during the official visit of the Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. These agreements are set to deepen cooperation in the critical sectors of nuclear energy and petroleum, strengthening the already robust partnership between the two nations.
India-UAE Sign 5 MoUs
Why In News
- India and the United Arab Emirates (UAE), signed five memorandum of understandings (MoUs) or agreements during the official visit of the Crown Prince of Abu Dhabi, Sheikh Khaled bin Mohamed bin Zayed Al Nahyan. These agreements are set to deepen cooperation in the critical sectors of nuclear energy and petroleum, strengthening the already robust partnership between the two nations.
Nuclear Energy Cooperation
- One of the key MoUs signed was between the Emirates Nuclear Energy Corporation (ENEC) and the Nuclear Power Corporation of India Limited (NPCIL).
- This agreement focuses on the operation and maintenance of the Barakah Nuclear Power Plant in the UAE, marking a new chapter in nuclear energy cooperation between the two countries.
- As India continues to expand its nuclear energy footprint to meet growing energy demands, the expertise gained through this collaboration could prove invaluable.
- Ministry of External Affairs (MEA) underlined the significance of the MoU, noting, “This agreement reflects the deepening cooperation between India and the UAE in critical energy sectors.
- Nuclear energy will be a key component in ensuring energy security for both nations.” With India’s commitment to expanding clean energy sources, this cooperation will help diversify its energy portfolio while fostering stronger bilateral ties.
Long-Term LNG Supply And Petroleum Security
- MoU was signed between the Abu Dhabi National Oil Company (ADNOC) and Indian Oil Corporation Limited (IOCL) for a long-term supply of Liquified Natural Gas (LNG). This agreement is pivotal for India’s energy security, given its growing energy needs and commitment to reducing carbon emissions by transitioning to cleaner fuels like LNG.
- Two countries signed an agreement between ADNOC and India Strategic Petroleum Reserve Limited (ISPRL) concerning India’s strategic petroleum reserves.
- This agreement ensures that India can access emergency crude supplies, enhancing the country’s ability to mitigate global oil supply shocks. As the world’s third-largest oil importer, this partnership with ADNOC strengthens India’s strategic positioning in the global energy market.
Production Concession Agreement And Food Security
- Adding to the energy partnerships, a Production Concession Agreement for Abu Dhabi Onshore Block 1 was inked between Urja Bharat and ADNOC. This agreement provides India access to UAE’s hydrocarbon resources, marking another step forward in India’s quest for securing reliable and diversified energy sources.
- Beyond energy, the visit also witnessed the signing of an MoU between the Government of Gujarat and Abu Dhabi Developmental Holding Company PJSC (ADQ) on food parks development in India. This agreement underscores the expanding scope of India-UAE cooperation, focusing not only on energy security but also on food security—a critical issue for both nations.
Other Discussions
- The discussions also focused on emerging areas of collaboration, such as renewable energy, technology, and trade. Both leaders reaffirmed their commitment to elevating bilateral trade and investment, noting the successful implementation of the Comprehensive Economic Partnership Agreement (CEPA) signed in 2022, which has significantly boosted trade volumes between the two nations.
- The UAE is one of India’s most important strategic partners in the Gulf region, and their collaboration spans a wide array of sectors including energy, defence, and trade.
- With a bilateral trade volume of approximately USD 85 billion in 2022-23, the UAE is one of India’s largest trading partners, and both nations aim to expand this relationship further.
- The UAE is also among the top investors in India, particularly in the energy and infrastructure sectors. The agreements signed during this visit, especially in the energy sector, will provide India with reliable energy supplies at a time of global volatility in the oil and gas markets.
- Additionally, the visit comes at a time when both countries are working closely to develop regional connectivity projects, such as the India-Middle East-Europe Economic Corridor (IMEEC), which aims to boost trade and connectivity between these regions.
- UAE, with its strategic location and economic influence, is a key player in this corridor, and its collaboration with India will be instrumental in the project’s success.
