October 14, 2025

General Studies Paper -2

Context

  • Against the backdrop of BRICS 2026 in India, a stronger India–Africa–UAE (IAU) trilateral framework is emerging with the entry of new members including the UAE, Egypt, and Ethiopia in the group.

Background

  • The India-Africa-UAE trilateral partnership is an evolving concept focused on strengthening economic cooperation and connectivity, particularly in the areas of trade, investment, and infrastructure development.
  • Back in 2019, India and the United Arab Emirates (UAE) signed a Memorandum of Understanding on development cooperation in Africa.
  • The evolution is reflected in initiatives such as the Bharat Africa Setu, conceptualised in 2025.
  • It is a trade ecosystem launched by India and DP World (UAE) to double India–Africa trade by leveraging logistics, export finance, and certification services.

Existing Bilateral Ties

  • India and the UAE signed a Comprehensive Economic Partnership Agreement (CEPA) in 2022.
    • Aim: Raise non-oil trade to US$ 100 billion annually by 2027. Already, bilateral trade has reached US$57.8 billion in non-oil trade (US$85 billion including oil).
    • Sectors unlocked: Renewable energy, civil nuclear cooperation, fintech, logistics, aviation, food security, critical minerals, space, and advanced technologies.
    • UAE and Africa: Gulf countries invested over US$100 billion in Africa (2012–2022), with the UAE leading the pack.
    • UAE investments surpass those of China, France, and the UK, extending beyond traditional sectors into food parks, agri-tech, fintech, and renewable energy.
    • The UAE is also backing new economic zones in key African states, such as the digital incubator ecosystem in Ghana.
  • India and Africa: India has long-standing cultural and historical ties with African countries, but current trade levels remain modest. Africa accounts for 6% of India’s exports and 5.6% of imports.
  • Demographic synergy: India’s demographic dividend peaks by 2041 whereas Africa will see over 60% of its population in working age by 2050, making it the next global growth hub.

Pillars of the IAU Trilateral Cooperation

  • Industrial and Technological Cooperation
    • Co-development in agritech, edtech, fintech, AI-based learning, clean energy, and advanced manufacturing.
    • Platforms for joint intellectual property, innovation sandboxes, and start-up exchanges.
    • Bharat Mart (Dubai) will provide Indian SMEs and women-led enterprises a global export hub.
  • Investment and Financing Collaboration
    • Integration of India’s GIFT City, UAE’s DIFC, and emerging African hubs (Lagos/Kigali/Nairobi) for seamless capital flows.
    • Potential joint investment fund for SMEs, startups, and infrastructure.
    • Cross-border digital payment integration through UPI–RuPay connectivity.
  • Research, Vocational and Academic Partnerships
    • Academic partnerships, fellowship exchanges, and vocational upskilling.
    • Growing number of African students in India and institutional tie-ups with UAE universities.
    • Cultural festivals, tourism exchanges, and heritage commerce.

Strategic and Geopolitical Significance

  • Leadership in the Global South: The trilateral framework represents a fresh model of South–South cooperation, showcasing how emerging powers can shape global governance.
  • Strengthening Supply Chain Resilience: By diversifying trade and connectivity routes, the partnership helps reduce excessive reliance on Western-dominated or China-centric supply chains.
  • Enhanced Security Collaboration: The three regions can work together on maritime safety in the Indian Ocean, as well as emerging domains like cyber defense and counter-terrorism.

Challenges Ahead

  • Economic Asymmetries: Bridging the development gap between the UAE and less-developed African economies.
  • Political Coordination: Harmonising diverse governance models and policy priorities.
  • Global Competition: Ensuring visibility amid forums like G20, IPEF, and ASEAN.
  • Logistical Constraints: Large-scale connectivity projects across three continents face financing and coordination hurdles.

Concluding remarks

  • At a time when the world is scrambling for resources and transactional partnerships are on the rise, the India, Africa and UAE trilateral offers a framework that is both practical and principled.
  • In this Afro–Asian Century, such an initiative reflects the need for emerging economies to reshape development models and build resilient, diversified partnerships and supply chains that reduce vulnerability to global disruptions.
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