Following PM Narendra Modi’s visit, make UAE the fulcrum of India’s West Asia policy

Prime Minister Narendra Modi’s just-concluded two-day visit to UAE — the first by an Indian premier in 34 years — comes at a crucial juncture. Despite sizeable travels abroad, this was Modi’s first visit to a West Asian country after coming to office last year. It’s unfortunate that it has taken so long for an Indian PM to visit UAE. The latter hosts a huge Indian diaspora — 2.6 million in number — providing a solid foundation for bilateral ties. Add to this the fact that UAE is among the top four oil suppliers to India and two-way trade stands at a formidable $60 billion.

Against this backdrop, New Delhi’s ties with the fastest growing Arab economy should have been on a firmer footing. Boosting India-UAE economic relations has obvious advantages. Abu Dhabi itself has a sovereign wealth fund of $800 billion. UAE investments can play a vital role in building India’s infrastructure and kick starting its next phase of economic growth. Modi has done well to pitch India as a $1 trillion investment opportunity spread across sectors such as low-cost housing and cold storage networks. However, much will depend on how fast Modi is able to cut red tape at home and clear domestic cobwebs that snag investors.

That said, the strategic dimension of Modi’s visit can’t be underplayed. Given the rise of extremist groups such as the Islamic State, India and UAE face a common security threat. Perhaps one of the reasons Indian PMs often gave UAE and other Gulf countries the go-by is the perception that on issues to do with terrorism, they would automatically side with ‘Muslim’ Pakistan against ‘Hindu’ India. However, that calculus is changing now as the rise of Islamist extremism threatens Muslim societies before anybody else.

Moreover, UAE is attempting to go beyond its oil wealth and transform into a finance, technology and tourism hub — symbolised by Modi’s visit to Masdar city which is billed the world’s first zero-carbon planned city. UAE’s quest for modernity will become increasingly incompatible with Islamist extremism. There is an urgent need for India and UAE to enhance their ties to a strategic level and step up counter terrorism cooperation to tackle the scourge of extremism sweeping through West and South Asia. Akin to the Act East policy, UAE could be the springboard for a much needed Act West policy for New Delhi.