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Tuesday 7 February 2017

Strategic partnership with UAE is India's moment Sunday, 05 February 2017 | Kanchan Gupta |

Comprehensive Strategic Partnership with UAE is India's opportunity to forge a regional order that looks beyond a moribund SAARC weighed down by a cussed Pakistan, based on prosperity, stability and tolerance It's a tough choice to decide as to what is the most memorable sight in Abu Dhabi, the largest of the seven emirates that make up United Arab Emirates and the capital of this Gulf country. The awesome Sheikh Zayed Grand Mosque, built with sparkling white marble and crafted by Indian artisans, should be the clear winner. But if the mind were a hard disk, memories of a visit to this mosque would take up a third of the space. The remaining would be crowded by too many other memories to list. But some of them merit mention. The infrastructure that has been created in UAE to provide connectivity and boost economic activity beyond the flickering oil economy shows China is not alone in investing in the future. The restructuring of Government to bring it in tune with the needs and aspirations of young Emiratis is a lesson for fossilised governments pushing ossified ideas elsewhere. The UAE's emphasis on merit and professionalism, filling up the blank spaces with expats to make up the talent deficit that hobbles the best of intentions of well meaning governments, has created a system that is alive to the present and delivers services without hiccups. The setting up of a welfare system that addresses three key concerns of health, education and housing. The generation of wealth not only keeps UAE ahead of the curve but also underwrites and encourages enterprise which in turn empowers its citizens. There's a lot more to development and growth than chrome-and-glass malls and imagined 'smart cities' and grey concrete metro bridges. The singleminded attention on promoting a plural, open and tolerant society by shutting the doors, firmly, on religious exclusivism and bigotry secures the UAE from radical Islamist turmoil that's roiling the Middle East and countries beyond. And last though not the least, the spotlessly clean public spaces - you really don't need a cess, slogans and Mahatma Gandhi as a prop to enforce and ensure cleanliness. It's the farsightedness of the UAE leadership, especially Crown Prince of Abu Dhabi and deputy Supreme Commander of the country's armed forces, Sheikh Mohammed bin Zayad al Nahyan, that sets the emirates apart from others in the region. It also drives its foreign policy which now, in large measure, revolves around transforming bilateral relations with India, from incremental to rapid change. The Crown Prince attending India's Republic Day celebrations as the chief guest and the signing of numerous agreements were no doubt important milestones in this push to transform and upgrade a relationship which goes back 4,000 years. But there's a lot more to the visit than headlines in the media, here and in UAE. More important, work begins now to translate words into deeds. Abu Dhabi is eager and willing; it is for New Delhi to match that eagerness and willingness. In brief, it is for New Delhi to carry forward the upgraded strategic relationship that can be richly rewarding for both countries, more so for India. The transformation has to be lot more in real terms than just upping trade. At the political level, this is India's opportunity to forge a regional order that looks beyond a moribund SAARC weighed down by a cussed Pakistan, based on prosperity, stability and tolerance. Prime Minister Narendra Modi and Crown Prince Zayed Al Nahyan have affirmed their commitment to such an order. This is the beginning but it must not end with words of pious intent. Nothing comes free. The Comprehensive Strategic Partnership between India and the UAE which has evolved over the past two years is pegged on mutual benefits. The UAE has resources, we have the market and tremendous investment potential. Senior officials and Ministers in Abu Dhabi are brimming with optimism. But they are also looking at the fine print of the policies India has in place. Here are some examples of what can be accomplished. And what stands in the way of their accomplishment. The Abu Dhabi Investment Authority could fund the rapid development of India's neglected east coast through the building of ports. It could also fund the building of highways and logistics hubs. Infrastructure that connects ports, logistics hubs and end-users of goods and services could radically change India's industry and reinvigorate manufacturing. The jobs that these projects would generate are incalculable. Second, India and the UAE can partner in renewable energy projects, securing India's needs through investment and technology. Another aspect is India's conventional energy security. Here again the UAE's oil can be used for building strategic reserves, not at one but multiple locations. In turn, India can offer food security by setting up a logistics hub in the UAE where grains can be stored for onward distribution. The UAE is keen on setting up a logistics hub in Dubai for Basmati rice. Third, investment by the UAE in defence co-production can give a huge boost to 'Make in India'. Leaders in both Abu Dhabi and New Delhi are keen on seeing this happen, not necessarily for common but mutually compatible reasons. Accessing technology and funding its application to weapon systems and ammunition, as well as scaling up production for export to third countries, would radically alter India's regional and global stature as a rising power. But the proverbial slip between the cup and the lip comes into play, holding up the actualisation of agreements and understandings. Decision-makers in Abu Dhabi are acutely aware of roadblocks in the form of State laws and rules that militate against the reformist push by the Modi Government. They are also mindful of the yawning gap between what the Prime Minister promises and what Babudom delivers. Transparency, or the abysmal lack of it, comes as a dampener. Investment and industry are still cuss words in much of socialist India with alt-Left State Governments. To come in and then get bogged down is not an option for any serious investor. Nor is the prospect of endless litigation initiated by professional 'public interest' litigants and harassment by an all-powerful Green Tribunal whose every ill-conceived order magically transmogrifies into law, enticing for a big ticket investor like ADIA. It can always invest in another destination. A third factor that has given India a bad name abroad, no matter how hard this or any Government tries to improve ease of doing business, is New Delhi's slothful ways. The political leadership may demand speed but the bureaucracy continues to excel at poking spokes into the very wheels on which India plans to ride into prosperity. Behind the charade of bureaucrats promising swift implementation of decisions lurk loath and laziness to move things on the ground. The real 'India Story' remains captive to files that travel to and fro without reaching their final destination while white, green and blue notesheets crammed with gibberish serve to make fools of Ministers. The other obstacle that needs to be tackled pertains to legacy issues. The shoddy treatment meted out to Ettihad during the UPA years because of sanctimonious naysayers and a lot more still rankles with decision-makers in the UAE. The Modi Government has to bury these issues - indeed, all of the legacies it inherited in 2014 need to be buried forever. Blaming the old regime will convince none, neither will mere assurances bring in billions of dollars. Three rounds of talks on Comprehensive Strategic Partnership have happened - in 2015, 2016 and 2017 - and several agreements have been signed. It is now Prime Minister Modi's call as to whether this partnership will yield tangible results that go well beyond feel-good headlines. This could be one of his prized legacies

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