India, UAE Agree to Increase Cooperation in Advanced Technologies

The Indian flag is seen flying at the High Commission of India in Ottawa, Canada, on Sept. 20, 2023. The Canadian Press/Patrick Doyle

India and the United Arab Emirates (UAE) signed a memorandum of understanding (MOU) on Oct. 5 to enhance cooperation in sustainable industrial development and advanced technologies.

The MOU will facilitate industrial investments, technology transfer, and the deployment of key technologies in industries between the two countries, India’s Ministry of Commerce said in a statement.

The ministry stated that the MOU focuses on enhancing supply chain resilience, renewable energy, health and life sciences, space systems, artificial intelligence, Industry 4.0 enabling technologies, and standardization and metrology.

The agreement was signed between UAE’s minister of industry and advanced technology, Sultan Al Jaber, and Indian Commerce and Industry Minister Piyush Goyal, who was on a two-day visit to the UAE.

Mr. Al Jaber said the MOU seeks to promote industrial investments in key sectors beneficial to the economies of both nations. It also aims to develop technological solutions that support sustainability and climate neutrality efforts, he noted.

“By working closely within these strategic sectors, the UAE and India can accelerate sustainable growth and diversify their economies, promoting industries that are more competitive, efficient, and sustainable,” he said.

The two countries agreed to “share best practices on industrial enablement and incentivization for industrial growth and development” to enhance supply chain resilience, such as energy, land, and technology.

Under the MOU, both nations will also collaborate in real-time processing, the development of machine-to-machine control systems,  autonomous robotics, equipment, and vehicles, as well as the deployment of additive manufacturing in key industries.

The agreement also includes collaboration in research and development projects, with both sides agreeing to share best practices in science and technology policies, according to the ministry.

The two countries are also seeking to enhance collaboration in the commercial development, launch, and use of small satellites for communication and earth observation, as well as space exploration.

“This MOU opens new doors to develop cooperation efforts and build an institutional framework in the fields of emerging technologies,” Mr. Goyal said.

India, UAE Start Trading in Local Currencies

This came after the UAE and India signed an agreement in July to enable trade in rupees instead of dollars.

The decision is aimed at reducing dollar dependence, eliminating greenback conversions, slashing transaction costs, and creating a real-time payment link for cross-border trade.

Such arrangements, which are a growing trend in Asia, typically lower the cost of payments. India–UAE trade was about $84 billion in 2022, up by 68 percent from the previous year.

“The manner in which ties between our countries have expanded, you have made a big contribution to that. Every person in India views you as a true friend,” Indian Prime Minister Narendra Modi told UAE President Sheikh Mohamed bin Zayed Al Nahyan at an event in July.

Last year, the Reserve Bank of India (RBI) proposed a framework to manufacture trade agreements that feature local currency settlements as part of broader efforts to bolster exports amid sluggish international trade.

Officials say using local currencies can enhance bilateral trade relations and allow countries to allocate surplus balances to local assets, be it corporate bonds or government securities.

Andrew Moran and Reuters contributed to this report.