To set new horizons in cooperation, India and the UAE are concentrating on the sphere of nuclear energy and innovative technologies as the directions of future collaboration. The two countries have an expanding bilateral trade to over $100 billion, and are building trade in fintech, education, defense, and space. India and the UAE, which produces 25% of its energy in nuclear power plants, collaborate in the areas of clean energy and critical minerals. The interoperability of UPI-Aani, Jaywan card and CBDC is also on the table. The cultural and strategic closeness is reflected through educational relationships, as well as the BAPS temple in Abu Dhabi.
Context:
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India-UAE relations have emerged strongly over the last couple of years especially with the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022.
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In 2024 25, the alliance moved into other frontiers including civil nuclear power, digital fintech, defence equipment, and rare earths in addition to the usual trade and investment.
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The change is synonymous with other regional initiatives such as IMEEC or global initiatives such as I2U2 and BRICS.
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India and UAE are performing vital roles in core sectors of collaboration.
Nuclear Energy Cooperation
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The present nuclear capacity of UAE: up to 5.6 GW (25 percent of power generation)
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Goal: to double the nuclear capacity by 2030
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The role of India: Civil nuclear capability, potential partnership within the US-UAE-led PACE initiative
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Multilateral Synergy: The participation of France and U.S put India in a vantage position of being considered a reliable partner in non-weapon nuclear advancement
Advanced Technology and Fintech Integration
|
Initiative |
Description |
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Jaywan Card |
UAE’s domestic payment card based on India’s RuPay tech |
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UPI-Aani Integration |
Scheduled by Nov 2025 to allow real-time payment systems to interoperate |
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CBDC Interoperability |
Aimed at reducing reliance on SWIFT & dollar transactions |
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Local Currency Trade |
10% of India-UAE trade now settled in INR–AED |
Education and Frontiers of Knowledge Partnership
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IIT Abu Dhabi: Opted PhD in 2025
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IIM Ahmedabad Dubai Institute
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IIFT Dubai
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The purpose is to develop talented body of people and international academic research
Defense and Aerospace Relations
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Joint exercise Desert Cyclone, Desert Flag, India-France-UAE trilateral exercise
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Defense Hardware: LCA Tejas, drone, anti-drone technology composite elements.
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Exhibits: Indian companies displayed on IDEX, Dubai Airshow
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The Level of Cooperation: Higher to the dialogues of secretary-level
Critical Mineral, Space & Connect
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Critical Mineral Supply Chain: Talks under way
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Space Sharing: include polar projects and satellite partnership
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IMEEC: Plan over connectivity between India Middle East and Europe through ocean, energy and information transmission cables
I2U2 Projects:
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Gujarat has two food parks
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Renewable energy drive (60 GW in Gujarat / Rajasthan)
Trade, Investment & Economic Diplomacy
|
Metric |
Value |
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Bilateral Trade |
$100+ billion |
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UAE Investment in India |
$23 billion total ($4.5B in 2024 alone) |
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Bilateral Investment Treaty |
Finalized in 2023 |
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CEPA Advantage |
Diversified third-country market access |
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Manufacturing Incentives |
UAE offers legal certainty & low-cost energy, ideal for energy-intensive Indian industries |
Cultural Diplomacy and Common Values
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BAPS Hindu Temple Abu Dhabi: The beacon of religious unity and the cultural synergy of India and the United Arab Emirates
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Indian Diaspora in UAE: There are more than 3.5 million who are regarded as a goodwill and trade bridge
Conclusion
India and UAE are soon becoming partners in nuclear power, internet technology, defense, and green energy. This is a complex partnership which is based on trust, a common objective in development, and respect. With both countries adjusting to the changes in the global environment, their collaboration, epitomized by the BAPS temple that is fueled by the CEPA, IMEEC, and I2U2 infrastructure, makes them the champions of a strong and innovative Global South.
