India-UAE-Israel Food Corridor: A Pathway to Extensive Business Partnerships

 

The newly proposed India-UAE food corridor, now incorporating Israel as a third partner, presents a unique opportunity for extensive business partnerships among these nations. This initiative aims to strengthen food security, enhance agricultural exports, and improve trade dynamics.

The collaboration is a direct outcome of the historic I2U2 summit held in July 2022, which brought together leaders from India, Israel, the UAE, and the United States to foster joint investment across multiple sectors, including food, water, and energy. The commitment and cooperation of all involved partners and stakeholders will be crucial for the corridor's success, which is expected to serve as a model for similar initiatives globally.

India's ambition to become the food basket for West Asia is evident, with agricultural exports reaching $53.1 billion in 2022-23. Major exports to the UAE include cereals, sugar, fruits, and seafood, highlighting India's pivotal role in meeting the region's food demands. The country has the potential to significantly increase its agricultural yield with improved management of water resources and technology transfer, particularly through partnerships with Israel, known for its agri-tech innovations.

This food corridor not only aims to address food security challenges but could also transform India's trade profile. Currently, India faces trade deficits with nine of its top ten partners, with the exception of the US, where it enjoys a surplus. The corridor could lead to new trade opportunities and bolster economic ties, particularly with the UAE, which relies heavily on food imports to meet its needs.

Moreover, recent meetings between India and the UAE under their Comprehensive Economic Partnership Agreement (CEPA) indicate a mutual commitment to enhancing trade, targeting $100 billion in non-oil trade by 2030. This goal does not yet account for the anticipated benefits from the food corridor, which could triple the agricultural trade between the two countries.

Despite the strong economic rationale, swift action is needed from the partners to operationalize the corridor by 2030. The UAE's planned investment of over $2 billion in food parks and processing facilities in India is a positive step, but progress has been slow since initial promises in 2018. A dedicated working group involving both governments must ensure timely implementation to unlock the corridor's full potential.

In summary, the India-UAE-Israel food corridor holds the promise of not only enhancing food security and agricultural trade but also creating extensive business partnerships that could reshape economic dynamics in the region and beyond.