The bond goes beyond recent diplomatic agreements, as it is rooted in a history that spans over 6,000 years
The UAE hosted a record-breaking Diwali celebration in 2024, surpassing even the grandeur seen in India. Organised by Dubai’s economic and tourism department in collaboration with the Indian consulate, the festivities spanned three weeks, featuring vibrant streetlights and spectacular fireworks—a rare occurrence in a country that typically prohibits public fireworks. This celebration not only highlighted Indian culture but also underscored the profound India-UAE relationship, reported theweek.in.
India and UAE share deep historical and cultural ties reflected in grand Diwali celebrations and robust economic agreements
The rare permission for fireworks during Diwali reflects the UAE’s recognition of the Indian community’s significance. For many Indians, the UAE is more than a second home—it’s the only home some second- and third-generation Indians know. This deep bond predates the modern era, tracing back over 6,000 years of shared trade routes and cultural exchanges. The Indian rupee was even used as currency in the region before the UAE’s formation, symbolizing India’s role as an early partner in the UAE’s development.
Economic cooperation further cements this relationship. The India-UAE Comprehensive Economic Partnership Agreement (CEPA), signed on May 1, 2022, aims to increase non-oil trade to $100 billion by removing tariffs on over 80% of products and creating a transparent trade framework. India is the UAE’s largest non-oil trading partner, contributing 14% of such exports. CEPA has particularly boosted small and medium-sized enterprises by fostering an inclusive trade environment.
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The rupee-dirham agreement, signed on July 16, 2023, marked another milestone, allowing transactions to be settled directly in rupee and dirham, including oil payments
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This reduced dependence on the dollar, lowered transaction costs, and improved trade efficiency
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Following this, the UAE introduced Jaywan, its own payment system leveraging Indian technology, further strengthening economic ties
Gold trade has also benefited from CEPA, with India importing up to 200 metric tonnes annually under a 1% tariff quota. The UAE now accounts for over 16% of India’s gold imports. Additionally, the UAE’s strategic location enhances India’s global trade reach, using UAE ports as re-export hubs.
The partnership extends beyond trade into education and culture. Dubai will soon host Bharat Mart, showcasing Indian products globally, while Indian universities, including IIT Delhi, are setting up campuses in the UAE. The opening of a Hindu temple in Abu Dhabi and a CBSE regional office in Dubai further reflect these cultural exchanges.
Prominent figures like M.A. Yusuff Ali, chairman of Lulu Group International, highlight the growing ties: “The visits of UAE President Sheikh Mohamed bin Zayed Al Nahyan to India and Prime Minister Narendra Modi to the UAE have elevated this relationship, boosting investments and partnerships.”
The India-UAE relationship exemplifies how historical bonds, economic collaboration, and cultural exchanges can forge a resilient and multifaceted partnership.
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