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UPSC MainsGeneral Studies Paper IInternational RelationsPractice question

India-UAE Partnership Amidst Hormuz Crisis

India's growing partnership with the UAE has become crucial in addressing the geopolitical and economic challenges arising from the Hormuz crisis. Analyse.

Analyse~250 words2 min readmedium
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How to approach

Introduce the strategic importance and vulnerability of the Strait of Hormuz for India's energy and maritime security. Examine how the India-UAE partnership provides geopolitical buffers (bypassing chokepoints, strategic petroleum reserves, naval cooperation) and economic resilience (currency settlement, trade pacts, alternate corridors). Conclude with how this bilateral engagement has evolved into a strategic anchor for regional stability.

Model answer

317 words

Introduction

The Strait of Hormuz is a vital maritime chokepoint handling nearly 20% of global petroleum transit, making it central to India's energy and supply-chain security. Amid escalating regional friction and potential transit disruptions, India's Comprehensive Strategic Partnership with the United Arab Emirates (UAE) provides New Delhi with a crucial geopolitical and economic buffer.

Geopolitical and Energy Security Dimensions

  • Bypassing Maritime Chokepoints: The UAE operates the Habshan-Fujairah pipeline, which pumps crude oil directly to the Port of Fujairah on the Gulf of Oman. This infrastructure allows oil exports to bypass the volatile Strait of Hormuz entirely, ensuring uninterrupted supplies to India during regional blockades or conflicts.
  • Strategic Petroleum Reserves (SPR): The Abu Dhabi National Oil Company (ADNOC) is the primary foreign commercial partner storing crude oil in India's underground Strategic Petroleum Reserve facility at Mangalore. This commercial-cum-strategic agreement directly cushions India against acute supply shocks.
  • Maritime and Diaspora Security: Bilateral naval engagements, such as Exercise Zayed Talwar, strengthen maritime domain awareness in the Persian Gulf and western Indian Ocean. This cooperation safeguards vital sea lines of communication and secures the livelihoods of approximately 3.5 million Indian expatriates residing in the UAE.

Economic Resilience and Trade Diversification

  • Financial Insulation: The operationalisation of the Local Currency Settlement (LCS) mechanism in Indian Rupees and UAE Dirhams insulates bilateral trade from external dollar-denominated financial sanctions and currency volatility.
  • Institutionalised Trade Growth: The India-UAE Comprehensive Economic Partnership Agreement (CEPA) has driven bilateral trade past the $100 billion mark, solidifying long-term non-oil commerce and investments.
  • Alternative Connectivity Corridors: Initiatives such as the India-Middle East-Europe Economic Corridor (IMEEC) establish multimodal connectivity integrating ports and railways across the Arabian Peninsula, mitigating reliance on fragile traditional shipping choke points.

Conclusion

India's ties with the UAE have successfully transitioned from a transactional buyer-seller relationship to a comprehensive strategic alliance. By mitigating chokepoint vulnerabilities and securing alternate supply channels, the partnership anchors India's regional energy security and geopolitical resilience.

Key facts to remember

definition
Habshan-Fujairah Pipeline

An overland crude oil pipeline in the UAE that transports oil from Habshan fields to Fujairah on the Gulf of Oman, bypassing the Strait of Hormuz.

example
ADNOC Participation in Indian SPR

The Abu Dhabi National Oil Company (ADNOC) leases commercial and operational crude storage at India's Strategic Petroleum Reserve in Mangalore, bolstering India's energy buffer.

statistic

Bilateral trade between India and the UAE crossed the $100 billion threshold in FY 2024-25 following the implementation of CEPA.

— Ministry of Commerce and Industry

Frequently asked questions

Why is the Port of Fujairah strategically important during a Hormuz crisis?

The Port of Fujairah is situated on the Gulf of Oman, outside the Strait of Hormuz. Because oil can be piped overland to Fujairah, tankers can load crude without having to navigate into the Persian Gulf chokepoint.

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