I2U2
– INTERNATIONAL
News:
I2U2 lies at the core of
India-UAE relationship
What's
in the news?
● Prime
Minister Narendra Modi’s recent engagement with the United Arab Emirates (UAE)
has forged a robust strategic partnership between the two nations. Minilateral
formats such as the I2U2 (India-Israel-US-UAE), the India-France-UAE trilateral
partnership, and the signing of the Comprehensive Economic Partnership
Agreement (CEPA) have positioned the kingdom as a pivotal partner in India’s
rise, both economically and geopolitically.
Key
takeaways:
● The
UAE has a crucial role in supporting India’s political aspirations by
showcasing solidarity on global matters such as counterterrorism, regional stability, and climate change.
● The
strategic partnership reciprocally benefits the UAE by bolstering its position beyond West Asia, and expanding its influence
in the Indo-Pacific and broadly Asia.
I2U2:
● I2U2
initiative is a new grouping of India,
Israel, USA and UAE.
● In
the grouping’s name, ‘I2’ stands for India and Israel, whereas ‘U2’ stands for
USA and the UAE.
● This
is a great achievement which tells the geopolitical
changes that happen in the region.
● This
will not only revitalize and re-energize the system of alliances and
partnerships around the world, but also stitch together partnerships that did
not exist previously or were not utilized to their full extent.
● This
grouping is already being termed as a 'New
Quad’ or the ‘Middle-Eastern Quad’.
Objective:
● The
new grouping is described as an international
forum for economic cooperation.
● To
generate synergies that go beyond
government level cooperation.
I2U2
- Significance for India:
● The
new Quad, conceptualized during a meeting of the foreign ministers of the four
countries in October last year, is projected as an economic bloc with six focus areas of energy, transportation,
water, space, health, and food security.
1.
Economy:
● The
I2U2 allows India to secure investments from Israel, UAE, and the US, emerge as
an alternative renewable energy hub and
diversify the supply chain mechanism.
● Membership
of the I2U2 group suits India in many ways. It boosts the Comprehensive Economic Partnership Agreement (CEPA)
signed recently between India and the UAE, which is the highest contributor of
Foreign Direct Investment to India from the Gulf region.
● The
CEPA is expected to increase the value of bilateral trade to US$ 100 billion in
five years. UAE is also home to 35 lakh Indians, roughly a third of the
country’s population, and a major source of labour.
● The
first Leader's summit of I2U2 agreed to increase joint investment in six key
areas of water, energy, transport, space, health and food security.
2.
Food security:
● A
collaboration for “integrated food
parks” was announced following the summit. India will provide land, and the
UAE will invest US$ 2 billion in the project.
● With
expertise from the US and Israeli
private sectors, the food parks will help “maximize crop yields which, in
turn, will help tackle food insecurity in South Asia and the Middle East”.
● It
will enhance the food processing,
reduce food wastages, facilitate technological transfer, and help to double
farmer’s income.
3.
Renewable energy:
● Another
initiative is a hybrid renewable energy
project in Gujarat consisting of 300 megawatts of wind and solar capacity,
with investment from the UAE and support from Israel and the US.
4.
Technical expertise:
● Additionally,
the I2U2 grouping focuses on private
capital investment and technical expertise to solve waste treatment
problems, health access, and start-up linkages.
● India
stands to gain from these investments as India’s start-up industry is
increasing quickly.
● The
investments in start-ups and their linkages with other countries will provide
an impetus to entrepreneurial innovation
and the creation of more such ventures.
5.
Strategic:
● I2U2
is a winner for India at the diplomatic level too. It opens a window for India to play a greater global role with an enhanced
profile in West Asia.
● It
provides a new avenue to expand its cooperation with Washington beyond the
Indo-Pacific without sacrificing New Delhi’s strategic autonomy.
● It
could also deepen ties with the Middle East, a strategically important region
due to India’s energy and economic interests.
● The
I2U2 complements India’s Look West
Policy as it strengthens its position in the region by collaborating with
UAE and Israel on economic, oil, energy, and defence matters.
● While
Israel is a trusted defence partner of
India, the UAE is amongst the top
oil exporters to India.
● With
India undertaking an overhaul in its defence infrastructure and the critical
energy scenario prevailing in the world, this engagement is quite significant
6.
Geo-politics:
● Additionally,
partnering with the US other than in the Indo-Pacific enhances Indo-US
relations.
● Apart
from reaping the benefits of I2U2, India should make sure that the I2U2 should
not be used to antagonize other countries like Iran, and China.
Challenges
for India:
● India
might face challenges in balancing
India’s geopolitical equilibrium. For example, Israel views I2U2 as a step
towards augmenting opposition to Iran. The growth of I2U2 might create a
potential challenge for India to develop India-Iran relations.
The I2U2 is a good
opportunity to enhance cooperation in energy, security, food security, trade
and commerce, maritime security, etc. India’s participation in the West
Asian Quad brings Delhi in a string with other significant powers - including
Europe, China, and Russia – to try and involve all parties in the region. The I2U2 sets the stage for a new and engaged
phase in India’s ties with the Middle East.