Modi’s second innings means good news for UAE’s energy gains

The Indian Prime Minister’s epic win is having good ripples in the UAE and in the rest of the world. The extension of another term for Narendra Modi will mean a lot of bi-lateral trade opportunity and promising progress between India and United Arab Emirates (UAE).

For starters, the energy sector is expecting huge business opportunities. Modi had been working closely with the UAE and other Gulf countries over energy exchange plans. His two consecutive visits over the last tenure was an evidence of his keen interest in strengthening this. With Modi holding office again as PM, the opportunities of energy investments in India are only going to increase.

His Highness Shaikh Mohammad Bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy Supreme Commander of the UAE Armed Forces has already expressed his joy over Modi’s second term extension and his recent social media tweet expresses the crown prince’s expectations of healthy and robust economic gains for UAE vis-a-vie India. In a tweet, he has said, “We look forward to working together to deepen our strong bilateral ties.”

With Iranian falling off the favour of India, (like most other nations world over), industry experts are expecting deepening energy ties between India and Gulf Cooperation Council (GCC). This is in wake of the fact that globally, in the coming years, majority of the growth in energy demand is going to come from India.

In an official statement made by Union Minister of Petroleum and Natural Gas & Skill Development and Entrepreneurship Dharmendra Pradhan recently, he confirmed that “Our oil and gas demand is expected to increase nearly 3 fold from 229 Million Metric Tons currently to 607 Million Metric Tons in 2040.”

So, technically, Modi’s government will be looking for avenues to deliver cheap energy to India’s farming sector and other industries. This is good news for GCC with Saudi Arabia and the UAE expected to partially replace Iranian barrels to supply oil to India.

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