Remodelling the UAE – India aviation partnership

Context

As the pace of growth in India’s aviation sector — it is already the world’s third-largest domestic market in terms of passenger numbers — continues to quicken and the Government of India’s initiatives such as the Ude Desh Ka Aam Nagrik (UDAN) airport scheme are rapidly implemented, it is essential that an equally visionary approach to regulation and international partnerships is also considered.

For decades, the United Arab Emirates (UAE) has proven itself to be a close strategic partner and friend to India. Today, the UAE is India’s most significant outbound travel market, with over 4.5 million Indian tourists visiting the UAE in 2023.

Every week, Indian carriers fly over 600 times to the UAE, while UAE carriers operate over 500 weekly services to India. On the surface, these numbers appear significant. However, they are far below meeting current, let alone, future consumer demand.

UDAN Scheme (Ude Desh Ka Aam Nagrik)

It is a regional airport development and "Regional Connectivity Scheme" (RCS) of the Union Government of India.

It was initially launched on October 21, 2016, for a 10-year period.

The primary objective of the scheme is to provide affordable and efficient air travel options to residents of tier-2 and tier-3 cities, remote areas, and regions with limited or no air connectivity.

The scheme envisages providing connectivity to unserved and underserved regions of the country through the revival of existing airstrips and airports.

Nodal Ministry: Ministry of Civil Aviation

India – UAE bilateral relations

India-UAE diplomatic relations began in 1972. In 2015 the relationship was upgraded to strategic partnership

Economic: The UAE is one of the largest FDI investor in India. Also, there has been an Agreement on interlinking of the instant payment platforms -UPI (India) and AANI (UAE),Agreement on inter-linking domestic debit/credit cards -RuPay (India) with JAYWAN (UAE)

Energy Security of India:UAE is an important supplier of crude, LNG and LPG to Indian market.

Multilateral Cooperation:Both countries are part of various platforms such asBRICS and I2U2 (India-Israel-UAE-USA).

Diaspora and people to people relations:UAE has over 3.5 million Indian diaspora constituting roughly ~35 per cent of the country’s population.

PM inauguratedBochasanwasi Akshar Purushottam Swaminarayan Sanstha (BAPS)Hindu temple in Abu Dhabi.

Furthering regional Connectivitythrough India-Middle East Economic Corridor (IMEC) which will connect India, European Union, France, Germany, Italy, Saudi Arabia, UAE and US.

Defence Cooperation: Both countries participate inInternational Defence Exhibition and Conference (IDEX)and theNaval Defence and Maritime Security Exhibition (NAVDEX)and in military exercises such asDesert Flag and Desert Cyclone.