I2U2

I2U2

I2U2, or the “Western Quad,” includes India, Israel, UAE, and USA, formed in October 2021 after the Abraham Accord. Its first leader’s summit was held virtually on July 14, 2022.

Features of I2U2

• Aim: To discuss mutual interests and strengthen economic partnerships in trade and investment.
• Six crucial areas: Cooperation in water, energy, transport, space, health, and food security was prioritized.
• Focus on maritime security: Collaboration without military intent.
• Private sector capital: Promote low-carbon industries, modern infrastructure, and green technology.
• Low Carbon Development Pathways: For sustainable industries.

Significance of I2U2

1. Geo-Economic

• For Increasing trade: Expected to boost India’s exports through flourishing trade relations. ​​
• Food Security: This initiative offers India an opportunity to discuss food security. UAE will invest $2 billion to develop a series of integrated food parks across India, which would deploy climate-smart technologies to reduce food wastage, spoilage, and conserve freshwater.
• Exports and Imports: USA and Israel are major suppliers for India’s defense purchases, but the situation can be reversed with India exporting weapons to these countries.

2. Geo-Strategic

• Engaging with Middle East: The grouping can become the major engagement point in the Middle East and can help bring peace and prosperity to the region.
• Containment of China: With China on the rise, the West views it as an adversary trying to assert hegemony. Therefore, the West wants to contain China with countries bandwagoning together.
• Iran Nuclear Deal: There is interest in pressing Iran to reinvigorate the nuclear deal for peace with Israel.
• Russia-Ukraine Conflict: The conflict between these neighbors has created global shocks, forcing countries to take sides to protect their national interests.
• Greece-Turkey Conflict: The conflict between two NATO members over the militarization of the Aegean Islands is a significant geopolitical development.
• Confidence Building Measures: Smaller issues with Israel, USA, and UAE can be addressed through confidence-building measures.

3. Environmental

• Global Engagement: Partnerships between the First World and Third World countries can strengthen the environmental movement.
• Technology Transfer: Developed nations in this grouping can aid technology transfers for environmental sustainability.
• Renewable Energy: A hybrid renewable energy project of 300MW, consisting of solar and wind capacity, is being established in Gujarat.

4. Security

• Regular Military Exercises: The members have a synergy with military exercises within the group.
• Third World’s Global Engagement: Global South engagement in these groupings provides holistic security.

Significance of I2U2 for India

1. 1. Geo-Strategic

• Consolidation of India’s Middle East policy: India gains more freedom to interact with Israel and Gulf partners with this new “Quad.”
• Regional Balancer: India acts as a balancer by engaging with all countries in a geopolitically charged region, projecting itself as a strong bridge between Israel and the Arab world.
• Strategic Interest: The UAE is one of India’s top oil exporters, and Israel is a dependable ally in defense. This grouping is significant in the context of India’s defense overhaul.
• Alliance Formation: It strengthens India’s ties with both UAE and Israel.
• Role in Indo-Pacific: India and the US now have two platforms, QUAD and I2U2, to engage in the Indo-Pacific region, supporting India’s role as a net security provider in the Indian Ocean Region.
• Advantage of Abraham Accords: India can deepen its engagement with Israel while maintaining ties with the UAE and other Arab states.
• Bandwagoning against China: Limiting China is essential for India’s hegemony in the region, with I2U2 playing a supportive role.

2. Geo-Economic

• Economic Diversification: India can aid the UAE in diversifying into IT, finance, and agriculture.
• Greater Investments: This grouping allows India to secure investments and emerge as a renewable energy hub.
• Access to Market: With India having trade surpluses with each member, the market access can be further expanded.

• Food security provider: In the context of the Russia-Ukraine war, India can solidify its position in West Asia by filling the supply gap for food grains to West Asian countries.
• Technological powerhouse: India can learn from Israel’s expertise in niche technologies like nanotechnology and defense to become an export hub and technological superpower.

3. Others

• Move beyond bilateralism: This grouping helps India move toward a regional foreign policy in West Asia.
• Neutral arbitrator: India can prevent confrontation between Israel and Iran, with warm ties to both Shia-majority Iran and Sunni-dominated UAE.
• Peace and Prosperity: Reflects the US expectation that India can contribute to regional peace and prosperity.

Challenges with I2U2

• Israel-Palestine Conflict: Internal divides on this issue can hinder the organization’s functioning.
• Iran and Nuclear Deal: Focusing on bandwagoning regarding this may consume energy unproductively.
• Weakening USA: Decline in US hegemony affects the credibility of bodies it forms.
• Security: The US-backed Israel-Arab security deal could challenge India’s “strategic autonomy” in the Middle East.
• Asymmetry between members: USA and Israel are militarily stronger, while India and UAE are not as powerful.
• Cooperation: Members have conflicting stances on global issues, like the Russia-Ukraine conflict.
• Lack of Ideology: Lacks a unified ideology, affecting streamlined functioning.
• Containing China and Iran: US focus on China and Iran may affect India’s national interest, showing narrow organizational focus.
• Regional Issues of West Asia: India has traditionally avoided intra-regional West Asian issues; critics advise against entanglement in this alliance.

Way Forward

• FTA with members: India, with a trade surplus, should pursue Free Trade Agreements with the bloc members.
• Reducing dependency on Arms Import: Decrease dependency on Israel, USA, and Russia.
• Changing the significance: Shift the group’s focus beyond containing China and Iran to align with current geopolitics.
• Trading Bloc: Elevate the group to a trading bloc due to increasing trade ambitions.
• Making the Ideology Clear: Clear, transparent ideology is essential for efficient operations.
• Leaving Middle East Cold: Israel should independently address Middle Eastern conflicts.

The I2U2 alliance marks a significant development, presenting India as a “game changer” to foster trust between Israel and the Arab world. This aligns India with powers like Europe, China, and Russia, creating a foundation for deeper engagement with the Middle East.