India in the I2U2: Bridging the Gap between West and South Asia

A particular theme which can be noted in the practice of international politics in the present-day context is the operation of several miniaterals. When compared to international organizations and regional associations minilaterals seem to be a lot more dynamic and flexible in terms of their operation and outlook. They are generally issue based and see a select group of states collaborating with each other on mutually beneficial terms. While focusing upon one aspect of their collaborative engagement they like to keep their strategic choices separate. A similar phenomenon can be witnessed in the creation of the India, Israel, United Arab Emirates and the United States (I2U2) grouping (Suri & Sethi, 2023).

Many analysts have dubbed the creation of this forum as being reminiscent of a ‘Western Quad’. However, these group of states have highlighted energy, transportation, water, food security, healthcare and technology as the focal points of their engagement. Each of these states bring different kinds of strengths to this collaborative platform. India with its large economy and huge demographic dividend, Israel with its expertise in various niche domains like agriculture and cyber security, United Arab Emirates which is a hub for expatriates and its investment footprint and the United States with its global clout and financial wherewithal (Agnihotri, 2022).

India’s individual relationship with each of these sovereign states gives much scope for optimism. Starting with Israel. Though India’s traditional stance with regards to the Palestine issue caused much heartburn the relations have improved ever since 1992 with the initiation of formal diplomatic contacts. In the period since then the relationship has grown from strength to strength as India currently happens to be the largest importer of Israeli arms. India’s relations with the United Arab Emirates is largely driven by its large expatriate population which makes up one-third of the Emirati society. The UAE also happens to be India’s seventh largest investor as well as a big captive market for Indian exports.

This is marked in the signing of the Comprehensive Economic Partnership Agreement (CEPA) between the two states in 2022. India’s relations with the UShas grown from strength to strength ever since the signing of the India-United States Civil Nuclear Agreement in 2008. It has emerged as one of the US’s top strategic partners as evident in the wide gamut of collaborative engagements like the Basic Exchange and Co-operation Agreement (BECA) and the US-India Initiative on Critical and Emerging Technology (iCET) (Agnihotri, 2022).

The I2U2 got a head start with the hosting of a foreign minister’s conference in August, 2022. In July, 2023 the heads of states of these four constituents met once albeit virtually. Harping upon the theme of entrepreneurial zeal there has been a major push to link the private sector players of each of these participating states. The issue areas which this grouping tends to focus upon are particularly important in the backdrop of the Covid-19 pandemic as well as the economic downturn following the Russia-Ukraine war. Some of the important initiatives taken up by the I2U2 must be highlighted in this context (Mathew, 2022).

Firstly, the creation of integrated food parks across India which seeks to ensure food security in South Asia and the Middle East. The attempt is to create more diversified food production and delivery chains to reduce global shocks as well as to employ state-of-the-art climate-smart technology to reduce food wastage and spoilage. Secondly, the installation of 300 megawatts (MW) of combined wind and solar power capacity in Gujarat with the focus on a battery energy storage system. This will complement India’s efforts to achieve 500 gigawatts (GW) of renewable energy capacity by 2030 (Mathew, 2022).

However, some irritants are clearly visible which must be taken into account. In the current context the United States’s foreign policy outreach towards the Middle East is largely shaped by the Abraham Accords. This pact has seen the normalization of Israel’s diplomatic relations with some key Arab states like the United Arab Emirates, Bahrain and Sudan. The present I2U2 framework can be seen as a further extension in this regard. However, China’s growing strategic and economic influence in the Middle East as a whole is a cause of concern.

Its role in the normalization of diplomatic relations between Saudi Arabia and Iran points to the fact that the US is not the only peacemaker out there. Other than this Israel has emerged as the second largest foreign supplier of arms to China after Russia. China has also positioned itself as the third largest foreign investor in the United Arab Emirates as a part of its Belt and Road Initiative (BRI). In the long run geopolitical compulsions and economic interests of each of these participating states can well collide with each other (Agnihotri, 2022).

India’s participation in the I2U2 has important implications for its relationship with Iran. With the failure of the Iran Nuclear Deal in 2018 a host of economic sanctions have been imposed on Iran. However, New Delhi has been able to walk the tightrope in order to maintain its historic relationship with Iran. The United States and Israel have an explicit foreign policy agenda to contain Iran in the Middle East. However, India’s participation in the Quad which has seen New Delhi tactfully avoid endorsing any anti-China stance provides ample experience in this regard.

India needs the technological and financial expertise of the I2U2 countries to bring about much needed reforms in certain key sectors of its economy. Its participation in the I2U2 also re-affirms New Delhi’s importance as a bridge between West Asia and South Asia. Such engagements can go a long way to cement India’s place as an indispensable actor when it comes to the reform of key global institutions like the United Nations Security Council (UNSC).

The experience gathered from its participation in the I2U2 will also help New Delhi as it tries to tap into new geopolitical locales like East Africa or South Pacific. The grouping is also focused upon enabling a high degree of technology transfer between its constituent units. New Delhi must make sure that these exchanges happen on an equitable basis as evident in its stance concerning the Trade Related Intellectual Property Rights (TRIPS) waiver (Suri and Sethi, 2023).

In conclusion, apart from these strategic considerations the I2U2 must also look inwards to take note of certain key institutional requirements. One of its focus areas is to enhance private sector collaboration. Thus, the grouping must take note of the differential work practices and legal regimes guiding the operation of such entities. Another requirement is to create dedicated task forces to spearhead developments in multiple domains. The I2U2 can take note of the G-7’s mode of operation in this regard (Suri and Sethi, 2023).

When it comes to groupings in case of the Middle East the effort so far has been to harp upon certain problems like the issue of piracy or extremism. The I2U2 marks an important departure in this regard as it tries to focus upon the problems which drive people to commit such actions in the ultimate extent. In the long run the success of this grouping will depend upon two factors. The kind of visible impact that it can help bring to the lives of the people of the Middle East as well as the mature foreign policy choices of its key constituents.

(Debayan Ghatak, Adjunct Researcher, AGA)

References

1. Mathew, E. D. (2022, July 30). What is for India in I2U2? The New Indian Express. https://www.newindianexpress.com/opinions/2022/jul/30/what-is-for-india-in-i2u2-2482043.html
2. Agnihotri, I. (2022, August 16). I2U2: The Aspects and the Prospects. Indian Council of World Affairs. https://www.icwa.in/show_content.php?lang=1&level=1&ls_id=7760&lid=5166
3. Suri, N., and Sethi, H. (2023, February 7). The I2U2: Where Geography and Economics Meet. Observer Research Foundation. https://www.orfonline.org/research/the-i2u2-where-geography-and-economics-meet/