Tuesday 19 July 2022

India explores new opportunities for cooperation with I2U2

Barely nine months after the first meeting of the foreign ministers of India, Israel, the UAE and the US termed “The Western Quad”, the leaders of the four countries held a virtual summit. Coinciding with President Biden’s visit to Israel, the leaders of the four countries- US President Joe Biden, Israel Prime Minister Yair Lapid, Prime Minister Modi and President of UAE Mohammed bin Zayed Al Nahyan held the first-ever meeting of atypically named -I2U2.

 Akin to the Quad that has buttressed the Indo-Pacific construct, I2U2 is expected to make “West Asia” a geopolitical reality. But unlike the Quad, which graduated to a leadership summit after 13 years of its existence, the foreign ministers and sherpas of I2U2 held several rounds of meetings shaping the objectives of the new grouping. The intent of the group is to mobilize private sector capital and deploy it for economic cooperation in many areas. Instructively so, the sherpas are drawn from the economic division of each of these countries.

Summing up the broad agenda of I2U2, PM Modi, in his opening remarks stated- “It is clear that vision and agenda of I2U2 is progressive and practical. By mobilising the mutual strengths of our countries- Capital, Expertise and Markets, we can accelerate our agenda, and contribute significantly to the global economy. Our cooperative framework is also a good model for practical cooperation in the face of increasing global uncertainties1.

Drawing from their experience perhaps, the US and India which are part of the Quad, have set the ground running by adopting a bottom-up approach. Building on the strength of the strategic partnership between each of these countries and focusing on cooperation in technical areas, they have set the wheel running. Member countries have identified six areas for joint investments and new initiatives-water, energy, transportation, space, health and food security.

The challenges of the post-pandemic world have been exacerbated by the Ukraine war which dramatically worsened the global food crisis and energy security. In their first meeting, leaders of I2U2 focused attention on two ambitious projects- the food security project and the clean energy project2.

Accordingly, the UAE would invest $2 billion towards developing a series of integrated food parks in Gujarat and Madhya Pradesh. Employing renewable energy sources, with the expertise of the private sector companies of the US and Israel, state-of-the-art climate-smart technologies will be incorporated to reduce food waste and spoilage and conserve fresh water. Additionally, the US and Israel would offer innovative solutions to contribute to the sustainability of these projects. India will provide the land and will facilitate the integration of the agricultural produce with the food parks.  Clearly, the major outcomes will be the maximization of crop yields, enhancement of Indian farmers’ incomes and contribution toward food security of the Middle East and South Asia.

As part of the Arab Nations Food Security Program, in December 2020, at the height of farmers’ protests, India and UAE signed a $7 billion food corridor agreement3 and envisaged its implementation under the umbrella of Abraham Accords- Israel-UAE Peace Agreement. Indeed, by 2021, India has replaced Brazil as the major food supplier of Arab countries4. I2U2 has infused fresh impetus to the food security aspect which is very vital for Arab countries. The project will also review trade barriers, bring about harmonization of food safety and quality standards and establish benchmarks for the export of perishable food products and roll out a trade facilitation mechanism to facilitate a hassle-free export of food products from India. Always at the receiving end of phytosanitary issues, India would immensely benefit from the standard practices of project3. India is also likely to join the Agriculture Innovation Mission for Climate initiative (AIM for Climate).

Another important area actively prompted by all four member countries is clean energy. This is a priority for the UAE, host of COP28 in 2023 and home to the International Renewable Energy Agency (IRENA).  India has set an ambitious target of 500GW non-fossil fuel capacity by 2030 and the planned commencement of the hybrid renewable energy project of 300MW wind and solar capacity at Dwarka, Gujarat, will augur well for India’s energy security aspirations with UAE-based companies serving as knowledge and investment partners5. Together with the active participation of companies from the US and Israel, India can turn into a global hub for alternate supply chains in renewable energy. India has developed its own OPEC for solar energy with the International Solar Alliance (ISA) and the thrust of the clean energy project of I2U2 on renewable energy will add a fresh impetus to India’s quest for reliable energy security.

I2U2 is envisaging mobilizing private sector capital and expertise to modernize infrastructure and connectivity, improve health and access to vaccines, solutions for waste management and development of critical emerging and green technologies. Together, the complementary capabilities of the US investment and technical expertise, Israel’s pre-eminence in advanced technology, UAE’s experimentation with competitive policies and India’s talented manpower can help in building a strong ecosystem for Startups.

With economic cooperation as the cornerstone energetically advancing Abraham Accords, I2U2 delivers on the promise of Israel’s integration with the region and lays the ground for closer coalescing of the Middle East and South Asia. A coherent agenda of I2U2 not withstanding trenchant disagreements indicates that countries have a deep sense of clarity.

Regarding the Ukraine crisis, India, Israel and UAE have more or less adopted a similar approach towards Russia which is at odds with the US. Israel and UAE look to China as an opportunity in terms of investment and infrastructure development. However, roiled in an ongoing border standoff, facing regional security challenges and riddled with multiple divergences, India considers China an adversary while the US deems China a strategic challenge. Even countries have differing views on Iran. Betting on the collective strengths and complementary capabilities, I2U2 drew up a non-military agenda and now the group will be assessed for its delivery.

Geopolitics is moving into an arena of closed minilaterals with a defined purpose and absolute unanimity is a rarity now. Countries are forming coalitions to pursue their interests. For the first time, the Middle East is not a source of a global problem but is at the forefront of seeking solutions for the challenges of the 21st century.

Retracting from the Middle East, the US is now diverting its attention and resources to the most happening geopolitical theatre, Indo-Pacific. To consolidate regional stability, India with huge demographic strength, military powers, economic potential and regional power has been looped in. While disaster relief in the aftermath of the 2004 tsunami has triggered the Quad, responding to geopolitical uncertainties, with economic cooperation as the cornerstone, the US has shepherded the countries to come together into a minilateral. 

Unlike the Quad, which was labelled as “Asia’s NATO”, regional integration seems to be the main tagline of the I2U2. Shedding wariness, Modi has rescued India-UAE ties from the rut, by giving political imprimatur to the relationship with Israel and made the biggest makeover to harness the investment and advanced technology expertise of the region. Factoring China’s extensive global penetration, India is making strategic gains in the region. Coinciding the summit, Adani Ports and Gadot of Israel clinched the Haifa port bid6. Through nimble-footed diplomacy, India is exploring new opportunities and the emergence of I2U2 as a coherent group is a recognition of its burgeoning defence and strategic cooperation with the Middle East.

Throwing away “hesitations of history”, stepping out of its shell and seeking a larger role in the region, India is now steadily expanding its outreach with multiple partners. With every new engagement, India is expanding its vistas of cooperation and optimistically pursuing various options to tread the path of sustainable growth and economic development.


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