Critical Minerals and Aviation Key to Next Phase of India-UAE Ties, Says UAE Minister

India and the UAE are exploring new areas of economic cooperation beyond merchandise trade, with joint investments in third countries emerging as a possible next step, as per The Economic Times report news report.  

UAE Minister of Economy and Tourism Abdulla Bin Touq Al Marri said the two countries could work together on projects linked to critical minerals. He was speaking at an Investopia Global event held in partnership with the Confederation of Indian Industry (CII). 

Critical Minerals Identified 

The proposed cooperation includes minerals such as lithium, copper, nickel and cobalt, which are widely used in battery manufacturing, renewable energy equipment, semiconductors and data centres.  

Al Marri said securing access to these resources, along with developing processing capacity, would be important as supply chains continue to shift. He added that the UAE could participate through investments in projects that strengthen long-term mineral supplies. 

Supply Chain Cooperation 

The minister said geopolitical developments have led many countries to reassess existing supply routes and sourcing strategies. In this environment, he said India and the UAE could jointly develop projects in other countries instead of limiting cooperation to bilateral trade. 

He added that future engagement could also include co-investment platforms, industrial partnerships and greater financial connectivity between the two economies. 

Call for Higher Flight Capacity 

The UAE also reiterated its request to revise the India-UAE bilateral air services agreement. Al Marri said the existing allocation of weekly seats has been fully utilised, while passenger demand continues to increase. 

Under the current arrangement, airlines are allowed 66,000 weekly seats to and from Dubai and 50,000 weekly seats for Abu Dhabi. He said additional capacity would support trade, tourism and business travel. 

Airfares and Connectivity 

According to Al Marri, limited seat availability has contributed to higher airfares on India-UAE routes. Referring to an Observer Research Foundation study, he said a 1% increase in seat capacity could reduce fares by around 0.2%.  

He also noted that the UAE is home to more than 4 million Indians and said improved connectivity with second- and third-tier Indian cities would help meet growing travel demand. 

Meetings During India Visit 

During his visit, Al Marri held meetings with Commerce Minister Piyush Goyal, Civil Aviation Minister Ram Mohan Naidu, Andhra Pradesh Chief Minister N. Chandrababu Naidu and Gujarat Chief Minister Bhupendra Patel.  

The discussions covered trade, aviation and investment, with both countries looking to build on their existing bilateral trade of $100 billion while working towards the longer-term target of $200 billion. 

Read More: Government Highlights Start-up Village Entrepreneurship Programme Supports 4.32 Lakh Rural Enterprises! 

Conclusion  

Along with expanding trade, both countries are exploring cooperation in critical minerals, aviation and joint investments. The discussions indicate a wider economic partnership under consideration. 

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