I2U2 - INTERNATIONAL RELATIONS
News: India and the UAE hold talks on food security cooperation
What's in the news?
● India and the United Arab Emirates are going ahead with food security cooperation under the I2U2, a new West Asian quadrilateral that includes Israel and the United States.
Key takeaways:
● The
I2U2 leader's summit was held in July in which a decision was taken to harness
private capital among the member countries for projects on agriculture,
infrastructure, digital connectivity, water, energy and transportation.
● ADQ is an “active investor” and a Sovereign Wealth Fund located in Abu Dhabi.
I2U2:
● I2U2
initiative is a new grouping of India,
Israel, USA and UAE.
● In
the grouping’s name, ‘I2’ stands for India and Israel, whereas ‘U2’ stands for
USA and the UAE.
● This
is a great achievement which tells the geopolitical
changes that happen in the region.
● This
will not only revitalize and re-energize the system of alliances and
partnerships around the world, but also stitch together partnerships that did
not exist previously or were not utilized to their full extent.
● This grouping is already being termed as a 'New Quad’ or the ‘Middle-Eastern Quad’.
Objective:
● The
new grouping is described as an international
forum for economic cooperation.
● To generate synergies that go beyond government level cooperation.
I2U2 - Significance for India:
The
new Quad, conceptualized during a meeting of the foreign ministers of the four
countries in October last year, is projected as an economic bloc with six focus areas of energy, transportation,
water, space, health, and food security.
1. Economy:
● The
I2U2 allows India to secure investments from Israel, UAE, and the US, emerge as
an alternative renewable energy hub and
diversify the supply chain mechanism.
● Membership
of the I2U2 group suits India in many ways. It boosts the Comprehensive Economic Partnership Agreement (CEPA)
signed recently between India and the UAE, which is the highest contributor of
Foreign Direct Investment to India from the Gulf region.
● The
CEPA is expected to increase the value of bilateral trade to US$ 100 billion in
five years.
● UAE
is also home to 35 lakh Indians, roughly a third of the country’s population,
and a major source of labor.
● The
first Leader's summit of I2U2 agreed to increase joint investment in six key
areas of water, energy, transport, space, health and food security.
2. Food security:
● A
collaboration for “integrated food
parks” was announced following the summit. India will provide land, and the
UAE will invest US$ 2 billion in the project.
● With
expertise from the US and Israeli
private sectors, the food parks will help “maximize crop yields which, in
turn, will help tackle food insecurity in South Asia and the Middle East”.
● It
will enhance the food processing,
reduce food wastages, facilitate technological transfer, and help to double
farmer’s income.
3. Renewable energy:
● Another
initiative is a hybrid renewable energy
project in Gujarat consisting of 300 megawatts of wind and solar capacity,
with investment from the UAE and support from Israel and the US.
4. Technical expertise:
● Additionally,
the I2U2 grouping focuses on private
capital investment and technical expertise to solve waste treatment
problems, health access, and start-up linkages.
● India
stands to gain from these investments as India’s start-up industry is
increasing quickly.
● The
investments in start-ups and their linkages with other countries will provide
an impetus to entrepreneurial innovation
and the creation of more such ventures.
5. Strategic:
● I2U2
is a winner for India at the diplomatic level too. It opens a window for India to play a greater global role with an enhanced
profile in West Asia.
● It
provides a new avenue to expand its cooperation with Washington beyond the
Indo-Pacific without sacrificing New Delhi’s strategic autonomy.
● It
could also deepen ties with the Middle East, a strategically important region
due to India’s energy and economic interests.
● The
I2U2 complements India’s Look West
Policy as it strengthens its position in the region by collaborating with
UAE and Israel on economic, oil, energy, and defence matters.
● While
Israel is a trusted defence partner of
India, the UAE is amongst the top
oil exporters to India.
● With
India undertaking an overhaul in its defence infrastructure and the critical
energy scenario prevailing in the world, this engagement is quite significant
6. Geo-politics:
● Additionally,
partnering with the US other than in the Indo-Pacific enhances Indo-US
relations.
● Apart from reaping the benefits of I2U2, India should make sure that the I2U2 should not be used to antagonize other countries like Iran, and China
Challenges for India:
● India might face challenges in balancing India’s geopolitical equilibrium. For example, Israel views I2U2 as a step towards augmenting opposition to Iran. The growth of I2U2 might create a potential challenge for India to develop India-Iran relations.
The
I2U2 is a good opportunity to enhance
cooperation in energy, security, food security, trade and commerce, maritime security,
etc. India’s participation in the West Asian Quad brings Delhi in a string
with other significant powers - including Europe, China, and Russia – to try
and involve all parties in the region. The I2U2
sets the stage for a new and engaged phase in India’s ties with the Middle
East.