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HOME » Geopolitics » I2U2 bears fruit as UAE looks to invest $2 billion in India

I2U2 bears fruit as UAE looks to invest $2 billion in India

Rahul Gupta
by Rahul Gupta
15 July 2022
in Geopolitics
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The International Forum for Economic Cooperation formed by the four economically and politically aligned countries like the United Arab Emirates, United States of America, Israel, and India (I2U2) has started to bear fruit. Earlier struggling to balance the Arab and Israel relations, the formation of I2U2 is diplomatically a masterstroke by India.

With about $119 billion with America and $72 billion with UAE, India’s economic conjugation with its two biggest trading partners is a great achievement. Further, India’s technological cooperation with Israel and coming together of all of its trading allies is proving to be a boon for the economic expansion of India.

Food Corridor for Food Security

The first joint project of the I2U2 has been announced for India. In the first formal conclusion of the summit, PM Narendra Modi, Israel’s PM Yair Lapid, UAE President Mohammed bin Zayed Al Nahyan, and US President Joe Biden announced a 300MW hybrid renewable energy project in Gujarat, and a $2 billion investment by UAE for developing integrated food parks in India.

The $2 billion food parks funded by UAE are also known as the India-UAE food corridor and will be supported by Israeli technology. The food corridor ensuring the food security of West Asia and South Asia will be enabled by state-of-the-art climate-smart technologies to reduce food waste and spoilage, conserve fresh water and employ renewable energy sources.

The foreign secretary of India talking about the India-UAE Food Corridor worth $2 billion said that “India will provide appropriate land for the project and will facilitate farmer’s integration into the food parks. The US and Israel’s private sectors will be invited to lend their expertise and offer innovative solutions that contribute to the overall sustainability of the project. These investments will help maximize crop yields and, in turn, help tackle food insecurity in South Asia and the Middle East.

Also read: Decoding India’s idea behind I2U2

The grand plan of India

The success of the Abraham Accord signed between Israel, UAE and Bahrain that resulted in the formation of I2U2 has a great significance for India. Now, India will not have to balance its relationship with Israel and the Arabs. Made with the special purpose of economic cooperation, the grouping is expected to be termed significant security cooperation. As the grouping has already been called the West Quad, the defence cooperation of India with the US, UAE, and Israel will have a significant impact on global politics and security architecture in gulf countries.

About 8 to 9 million Indians are living in West Asia and with $38 billion in remittances, the Gulf is the biggest source of dollars for India. The groping will enhance the security of India there, and stability due to economic cooperation will open the doors for India’s prosperity.

Also read: I2U2 – West Asian Quad is ready with India leading from the front

Further, the conflict between Iran and Saudi Arabia is also expected to grow, as the new grouping is not liked by countries like Iran and Pakistan. Israel’s conflict with Iran and Pakistan’s with India is expected to create a new alignment in the region. China, Pakistan, Russia, Iran, and Turkey on one side and India, Israel, the USA, and UAE on the other are expected to divide West Asia in two parts.

As the uncertainty in global politics is growing, the grouping will play a significant role in shaping the new world order. Moreover, I2U2 is expected to enhance India’s interest in energy, food, workers, trade, investment, and maritime security in the region.

 

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