Think tank chief: UAE can drive growth in India’s economy
The UAE could drive India’s economy in the same way Hong Kong fuelled the growth of China, says Reuben Abraham, chief executive of leading Indian think tank IDFC.
With India poised to pass Britain and France in the league table of world economies, now is the time to develop the relationship with the UAE, Mr Abraham told The National Future Forum yesterday. “There are huge trading links between the subcontinent and the Arabian Peninsula that go back millennia,” Mr Abraham said. “Ever since the monsoons were discovered, Arab traders have been in the west coast of India.
“It is the same with currency. The Indian rupee used to be the currency here until 1966 or 1967. There’s a long-standing trading relationship, not necessarily with the UAE but definitely with the Arabian Peninsula.”
That relationship is ripe for better development, he said.
“On top of that you’ve got the current trading links,” Mr Abraham said. “If you look at a place like Dubai and at the money in Dubai, I’d say a very large amount is generated by Indians.”
Historically, Mr Abraham said, Hong Kong acted “like a magnet” to pull in investment in China.
The advantage for the UAE and India in working together was “not like building a relationship with an African country where you have to start from scratch. There are long historical ties, long people-to-people ties”, he said.
One area Mr Abraham said could experience rapid growth was higher education. For many Indians, the options have been between trying to gain admission at home where places are highly competitive, or going to North America to study.
The UAE could be an ideal compromise solution if academic standards are assured.
“To get into an elite Indian college today is extraordinarily hard to do,” Mr Abraham said. “Getting into an Ivy League school is incredibly expensive.
“If I could get an education at $10,000 [Dh36,700] a year, or
$40,000 for a degree, I think it would be an explosive opportunity when you would maintain standards.”
The political climate in the US means fewer Indian students are applying to study there, Mr Abraham said.
“If you look at the numbers of Indians, enrolment is going down a significant number in dollar terms.
“Today that goes to Australia, Canada, New Zealand – those sorts of places. Why not here?
“I’m a parent. When they are 17 years old, I would much rather have my kid two and a half hours away in a secure, protected environment than 15 hours away.”