INDIA-UAE SUPPLY CHAIN INFRASTRUCTURE

India's goal to become more involved in international trade, particularly in areas where resource security and cutting-edge technology are critical, is seen in its interest in the Middle East Europe corridor.

- Dr Kemal YILDIRIM

Introduction

Since it provides a paradigm for economic integration between Asia, the Middle East, and Europe, the deal with the UAE is a step toward achieving this goal. India is putting itself in a strategic position to dominate both West Asia and the Indo-Pacific. India is establishing itself as a regional leader with the ability to impact international commerce and technical trends through a combination of diplomatic initiatives, technological partnerships, and economic accords.

One important component of this approach is the partnership between India and the UAE. India views the UAE as a gateway to both the Middle East and Europe because of its abundance of resources and advantageous position. Through this collaboration, India is able to expand its sphere of influence outside of South Asia and into new markets where its economic and technological aspirations can thrive.

There are still issues with the India- UAE alliance, notwithstanding its positive qualities. China is fiercely competitive in industries like chip manufacture, and despite India's efforts to establish itself as a superior substitute, it still confronts many obstacles. India will need to make significant investments in infrastructure, human capital, and innovation to reach its full potential because China's hegemony in the global semiconductor industry will not be easily challenged.

Following the establishment of a bilateral free trade agreement (FTA) early last year, supply chain participants on the India - UAE trade route seem more optimistic about the rate of demand growth. According to official figures, two-way trade between India and the UAE reached a record high last year, up 23% and valued at over $85 billion. This robust expansion refueled business alliances and ocean service networks.