There is an election atmosphere going on in India. The country needs investment. In such a situation, UAE can come to help its friend. Yes, such reports are coming out that UAE, India’s best friend among the Gulf countries, can make big investments here. This investment can be around 50 billion dollars i.e. more than Rs 4 lakh crore. This news may upset China, which is currently craving foreign investment. On the other hand, Pakistan may be shocked because the neighboring country is seen asking for help with just a bowl in front of the Gulf countries.
If we try to see this news from India’s perspective then it can be quite good news. There is a reason for this also. First, relations with UAE, which is India’s second largest trading partner, will improve further. Secondly, this money will greatly strengthen India’s manufacturing sector and infrastructure. Due to which the country’s economy will get a boost. This news has come at a time when India is in great need of investment. So that infra work can be accelerated further.
100 billion dollar business
At present, India’s or rather PM Modi’s relations with UAE have become very strong. After becoming PM in 2014, Narendra Modi has visited UAE four times. Before this, the last time UAE was visited by the then PM of India Indira Gandhi was in the year 1981. At the same time, UAE also wants to further strengthen its relations with India. There is a reason for this, India’s economic growth is the highest among the big countries of the world. This is the biggest reason why UAE is playing a gamble of 50 billion dollars in India. At present, non-oil bilateral trade between UAE and India has reached 100 billion dollars.
India’s middle class is UAE’s target
UAE wants to target the middle class of India with this investment. There is a reason for this also. India’s middle class has a large share in the country’s population. The number of such people in India is around 44 crores. It means clearly that this class has a big stake in India’s economy and growth. By the year 2030-31, the number of this section in India may reach 71.5 crore, which is equal to 47 percent of the total population. In such a situation, UAE’s stake in India has been made very thoughtfully. By the way, when this announcement will be made and how much is not yet confirmed. But it can be announced before the elections of 2024.
30 percent Indians in UAE
Just as UAE is important for India. Similarly, India has always been important for UAE. This can be estimated from the fact that the number of people from India in the total population of UAE is about 30 percent. This 30 percent people send money to India in the form of foreign exchange, due to which India’s foreign exchange reserves are about 100 times more than that of Pakistan. According to the report, people from Kerala are most likely to meet people from India in UAE. In the coming days, we may see further increase in the number of Indians in UAE.
Why would China be worried?
The improving economic relations between UAE and India may upset both China and Pakistan. First let’s talk about China. China’s problems may also increase because India is continuously receiving foreign investment. This means that India’s economic growth will get a further boost and in the coming years, India will become the leader of Asia, leaving China behind on the economic front.
In the last few months, those foreign companies which were earlier working in China are arriving in India. In which Apple’s name can be taken prominently. Tesla is also coming to India. Micron, Foxconn and many other Taiwanese companies are coming to India and making investments and helping in making India the largest factory in the world. Which used to be China till now. In such a situation, it is natural for China to be worried.
Why might Pakistan be surprised?
UAE is a Muslim country and Pakistan also keeps itself in the category of Muslim countries. The economic condition of Pakistan is not hidden from anyone. It has become a habit of the Pakistani government to extend its hand sometimes to China and sometimes to the IMF and Gulf countries. Citing that it is a Muslim country, Pakistan has repeatedly asked for help of one or two billion dollars from UAE. In such a situation, if Pakistan comes to know that UAE is investing 50 billion dollars or more in India, then what will happen to it?
Pakistan would like UAE to invest in it first, but this is not possible because there is nothing in Pakistan on which to bet. Even political stability is negligible. And terrorism is at its peak. Which is not liked at all in UAE. In such a situation, Pakistan’s move towards UAE can surprise.