Economic Diplomacy of India in the United Arab Emirates (2014-2022)

Document Type : Original Article

Authors

1 PhD in Political Science, Department of Law and Political Science, University of Tehran, Tehran, Iran

2 Associate Professor in Political Science, Faculty of Law and Political Science, Allameh Tabatabai University, Tehran, Iran

Abstract

Introduction
In recent decades, economic relations between India and the United Arab Emirates (UAE) have witnessed significant growth, representing one of the most important examples of regional cooperation in the Middle East and South Asia. Given its strategic position along global trade routes and access to Gulf markets, the UAE has consistently been one of India’s primary partners in investment, trade, and energy. Since 2014, the Indian government has pursued proactive economic and trade policies to strengthen its economic diplomacy and enhance bilateral relations with the UAE through joint investments, infrastructure projects, and the expansion of diverse trade exchanges. This period has also been marked by India’s focus on creating regional economic alliances and leveraging economic diplomacy to increase its influence in the Middle East. This study aims to analyse and evaluate India’s economic diplomacy in the UAE between 2014 and 2022. The main objectives include examining the economic policies and strategies of the Indian government, identifying the key factors of success and existing challenges in bilateral economic relations, and analysing the impact of this diplomacy on trade, investment, and energy cooperation. Furthermore, the study aims to demonstrate how India’s economic interactions with the UAE at regional and global levels have strengthened its position in the Middle East, and to provide policymakers with insights into the field of economic diplomacy.
 
Methods
Qualitative research is an in-depth and descriptive approach that examines phenomena in their natural and real-life contexts. Instead of relying on numerical data, this method focuses on textual, verbal, or visual data to comprehensively understand meanings, experiences, and perspectives. The researcher plays an active role, collecting information through observation, interviews, focus groups, or document analysis. In qualitative research, data analysis is a gradual and interactive process involving categorisation, coding, and the extraction of meaningful themes and patterns. This method allows the researcher to identify complexities, contexts, and hidden relationships among concepts, providing rich and deep interpretations of social realities. Its flexibility also enables research questions to be refined or developed during the study. A key feature of qualitative research is validation through careful review and verification of data. By incorporating participant feedback, using multiple data sources, and revisiting findings, researchers can enhance the accuracy of results. This approach is particularly suitable for human, social, and cultural issues that quantitative data cannot fully explain, thereby generating contextual and comprehensive knowledge.
 
Findings
The analysis of India’s economic diplomacy in the UAE from 2014 to 2022 indicates that India, through diverse strategies, successfully expanded trade and investment relations with the UAE. Bilateral trade volumes consistently increased during this period, and India managed a significant portion of its energy imports and industrial and service exports via the UAE. Moreover, joint investments in infrastructure, information technology, and renewable energy projects strengthened economic relations and increased India’s influence in the Middle East. Additionally, India’s economic diplomacy, emphasising trade agreements and regional cooperation, has mitigated challenges posed by competition with other Asian countries and the effects of energy market fluctuations. The findings suggest that the use of economic diplomacy tools, such as participation in exhibitions, conferences, and direct negotiations with UAE institutions, contributed to the establishment of sustainable trade networks and enhanced mutual trust. Overall, this period demonstrates India’s success in consolidating its economic position in the UAE and leveraging regional opportunities to develop long-term economic relations.
 
Conclusion
The examination of India’s economic diplomacy in the UAE from 2014 to 2022 reveals that proactive and strategic policies significantly strengthened bilateral trade and investment relations. Achievements during this period include increased trade volumes, the development of joint projects, and enhanced cooperation in the energy and technology sectors. Furthermore, the use of economic diplomacy tools and continuous engagement with UAE institutions facilitated the creation of sustainable trade networks, thereby increasing India’s regional influence. Overall, this trend illustrates that smart economic diplomacy can play a critical role in reinforcing a country’s position in the international arena and capitalising on regional opportunities.



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Main Subjects


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