India and the UAE are poised to deepen their economic integration with the signing of a Bilateral Investment Treaty (BIT) between Prime Minister Narendra Modi and President Mohammed bin Zayed Al Nahyan during a significant visit to Abu Dhabi and Dubai on February 13-14. The UAE stands as the third-largest source of foreign direct investment (FDI) into India and ranks as India's seventh-largest trade partner.
Although the Modi government has maintained secrecy surrounding the visit, it is understood that the Prime Minister's trip to the UAE will mark a milestone. India already has a comprehensive economic partnership agreement with Abu Dhabi since February 2022. Putting the Bilateral Investment Treaty (BIT) into perspective, the treaty was approved by the Modi cabinet on February 1, making the UAE the only country with which India has both a Comprehensive Economic Partnership Agreement (CEPA) and a BIT. Notably, countries like South Korea, Japan, and Singapore have a CEPA with India but lack a BIT.
In addition to inaugurating the BAPS Hindu Mandir in Abu Dhabi and launching a Bharat Mart for Indian MSMEs to trade in Dubai, Prime Minister Modi's agenda includes several other significant items. He is slated to be the keynote speaker at the government summit in Dubai, underscoring the importance of the visit.
PM Modi will have a separate engagement with Sheikh Rashid A Maktoum in Dubai apart from his bilateral engagement with President MBZ. PM Modi shares a close relationship with President MBZ, who surprised everyone when he spoke at the Vibrant Gujarat event this year as the UAE ruler hardly ever addresses any global event including G-20 in India or COP 28 in UAE.
