Prime Minister Narendra Modi’s efforts to woo investors seem to be finally paying off. As India hosts the Crown Prince of Abu Dhabi Sheikh Mohammed bin Zayed Al Nahyan as the Chief Guest for the 70 th Republic day, more than 14 pacts were signed by the two leaders to advance the bilateral relationship between the two countries. This is the second time in two years that such a dialogue has been initiated and concluded by the heads of the two states.
The oil and cash rich Middle Eastern Kingdoms have usually had a forsty relationship with India and a warm relationship with Pakistan as it is an Islamic country. There has been a major shift in this policy as PM Modi has made significant efforts to break the ice and get investment from these countries. India badly needs to develop its infrastructure in order to become a golbal leader for trade and commerce. The challenge here is that the country currently does not have the resources that are needed to fuel a boom in infrastructure development.
Hence, it has to look to public private partnerships to get these funds from investors. It is hence looking at the Middle East which is flush with oil dollars. Also, India believes that getting good trade deals with these countries can be good for exporting goods and defence equipment in future. UAE is a major supplier of oil for India and hence a deal with them will help us a lot.
India is also looking to get major defence deals as companies start manufacturing here. The Crown Prince has agreed to invest $75 billion in India as it sees India as a strategic partner and a good investment opportunity.