I2U2 and India

1. Introduction

The I2U2 is a minilateral grouping comprising India, Israel, the United Arab Emirates (UAE), and the United States, established to promote practical cooperation in areas such as food security, clean energy, technology, infrastructure, water, health and innovation. Unlike traditional geopolitical alliances, I2U2 is an investment-oriented partnership that seeks to leverage the complementary strengths of its member countries to address common developmental and economic challenges through collaborative projects. I2U2 and India therefore represents an important example of India’s growing role in minilateral cooperation.

For India, I2U2 and India represents an important pillar of its West Asia policy and multi-alignment strategy. It provides opportunities to attract foreign investment, strengthen food and energy security, promote technological innovation, and deepen strategic partnerships with key countries in the Middle East and beyond. By combining economic cooperation with strategic engagement, I2U2 and India has emerged as a significant platform for advancing India’s regional and global interests.

2. Evolution of I2U2

• 2020 – Abraham Accords: The normalisation of diplomatic relations between Israel and the United Arab Emirates (UAE) under the Abraham Accords created a favourable geopolitical environment for greater regional cooperation and laid the foundation for the emergence of I2U2. I2U2 and India subsequently developed as an important framework for India’s engagement with the region.
• 2021 – Formation of I2U2: In October 2021, the Foreign Ministers of India, Israel, the UAE and the United States held their first meeting and formally launched the grouping to promote practical cooperation in mutually beneficial sectors.
• 2022 – First Leaders’ Summit: The first I2U2 Leaders’ Summit was held virtually on 14 July 2022, during which the four countries identified food security and clean energy as priority areas and announced flagship investment projects.
• Evolution into an Economic Partnership: Unlike conventional strategic alliances, I2U2 has evolved into a project-driven and investment-oriented minilateral platform, focusing on infrastructure development, technology, innovation, supply chains and sustainable development through public-private partnerships.
• Present Status: Today, I2U2 is emerging as an important pillar of India’s West Asia engagement, complementing initiatives such as the India–Middle East–Europe Economic Corridor (IMEC) and strengthening cooperation in economic growth, energy transition and regional connectivity. I2U2 and India therefore remain important for India’s evolving regional and global economic strategy.

3. Significance of I2U2 for India

Strengthening India’s Strategic Engagement in West Asia

I2U2 has emerged as an important pillar of India’s West Asia policy, enabling it to deepen strategic engagement with three of its most important partners—the United States, the United Arab Emirates (UAE) and Israel. The grouping reflects India’s policy of multi-alignment, allowing it to strengthen bilateral and multilateral partnerships without becoming part of any formal military alliance. It also demonstrates India’s ability to work simultaneously with countries having diverse geopolitical interests while pursuing its own national priorities.

The platform has significantly enhanced India’s strategic presence in West Asia, a region that is crucial for its energy security, trade, investment and the welfare of the Indian diaspora. Through I2U2, India has expanded cooperation beyond traditional political and security issues to emerging areas such as technology, clean energy, food security and infrastructure. The grouping also reinforces India’s image as a reliable and constructive partner capable of promoting stability, economic growth and sustainable development. I2U2 Significance for India is therefore closely linked to India’s strategic and economic interests in West Asia.

Enhancing Food, Energy and Economic Security

One of the most significant achievements of I2U2 has been its focus on investment-driven economic cooperation. At the first Leaders’ Summit in 2022, the UAE announced an investment of US$2 billion for establishing Integrated Food Parks in India. These food parks are expected to strengthen agricultural value chains, reduce post-harvest losses, improve food processing, generate rural employment and enhance India’s food exports by combining UAE investment, Israeli agricultural technology, American private-sector expertise and Indian production capacity. India and I2U2 cooperation therefore has significant potential to strengthen India’s food and economic security.

I2U2 has also strengthened India’s clean energy transition through the proposed 300 MW hybrid renewable energy project in Gujarat, involving solar power, wind energy and battery energy storage, with an estimated investment of US$330 million. The initiative supports India’s efforts to diversify its energy mix, attract green investments and accelerate sustainable industrial growth. By combining investment, technology and innovation, I2U2 contributes to India’s long-term objectives of enhancing food security, energy security and economic resilience.

Promoting Technology, Innovation and Infrastructure Development

I2U2 promotes cooperation in Artificial Intelligence (AI), space technology, water management, smart agriculture, healthcare, innovation and start-ups. Such collaboration enables India to access advanced technologies, strengthen research partnerships and accelerate innovation-driven economic growth. I2U2 UPSC preparation should therefore cover the grouping’s role in technology, innovation and infrastructure development.

Strengthening Connectivity and Supply Chain Resilience

The grouping complements initiatives such as the India–Middle East–Europe Economic Corridor (IMEC) by promoting regional connectivity, resilient supply chains and infrastructure development. It supports India’s objective of becoming a major manufacturing, logistics and trade hub connecting Asia, the Middle East and Europe. I2U2 and India Relations are therefore important for strengthening India’s connectivity and supply chain resilience.

Enhancing India’s Global Influence and Economic Diplomacy

I2U2 has strengthened India’s role in minilateral diplomacy by demonstrating its ability to build flexible, issue-based partnerships for addressing global challenges. It has enhanced India’s diplomatic influence, promoted investment-led cooperation and reinforced its image as a responsible global power committed to innovation, sustainable development and regional stability. I2U2 and India therefore represent an important dimension of India’s global economic diplomacy and strategic engagement.

4. Challenges for India in I2U2

Geopolitical Instability in West Asia

The biggest challenge for India in leveraging the full potential of I2U2 is the persistent geopolitical instability in West Asia, one of the world’s most volatile regions. The grouping brings together countries with diverse strategic interests, making regional conflicts a major obstacle to sustained economic and strategic cooperation. Escalating tensions such as the Israel–Hamas conflict (since October 2023), the Iran–Israel confrontation, the Red Sea crisis, and recurring instability in the Gulf have adversely affected regional security, disrupted trade routes and created uncertainty for long-term investments.

For India, these developments have direct strategic and economic implications. West Asia accounts for a substantial share of India’s crude oil and LNG imports, hosts a large Indian diaspora, and is an important destination for Indian exports and investments. Continued instability threatens energy security, increases shipping and insurance costs, and affects the movement of goods through critical maritime chokepoints such as the Strait of Hormuz and Bab-el-Mandeb. The recent attacks on commercial vessels in the Red Sea have highlighted the vulnerability of global supply chains and maritime commerce.

Geopolitical tensions also slow the implementation of flagship I2U2 initiatives. Large-scale investment projects such as the US$2 billion Integrated Food Parks in India and the 300 MW hybrid renewable energy project in Gujarat require a stable regional environment, sustained investor confidence and uninterrupted cooperation among partner countries. Prolonged conflicts may divert political attention, delay financial commitments and reduce the pace of project implementation.

Another challenge for India is that the four I2U2 members do not always share identical strategic priorities regarding regional conflicts. While the United States and Israel often adopt security-centric approaches, India and the UAE generally emphasise dialogue, diplomacy and economic cooperation. Managing these differences while keeping I2U2 focused on its developmental agenda requires careful diplomacy.

Therefore, India must continue pursuing its policy of strategic autonomy, maintain balanced relations with all major stakeholders in West Asia, and encourage I2U2 to remain an economic and development-oriented partnership insulated from regional geopolitical rivalries as far as possible. I2U2 Challenges for India are therefore closely connected with the wider geopolitical environment of West Asia.

Balancing Relations with Competing Regional Powers

India’s participation in I2U2 requires careful diplomatic balancing because it maintains strong and mutually beneficial relations with Israel, the United Arab Emirates (UAE), Saudi Arabia, Iran and the United States, all of whom have differing strategic interests in West Asia. While I2U2 strengthens India’s cooperation with Israel, the UAE and the US, India cannot afford to overlook its long-standing strategic partnership with Iran, which remains crucial for its energy security, regional connectivity and access to Afghanistan and Central Asia through the Chabahar Port.

One of the major diplomatic challenges arises from the continuing Iran–Israel rivalry and broader geopolitical competition in West Asia. India has traditionally followed a policy of engaging all major regional actors without aligning itself with any particular bloc. However, increasing regional polarisation often puts pressure on India to balance its strategic partnerships while preserving its independent foreign policy. Any perception of favouring one side could affect India’s diplomatic credibility and economic interests.

Maintaining this balance is also important because West Asia is home to over 9 million Indians, whose welfare remains a key priority of India’s foreign policy. The region contributes significantly to India’s remittances, while countries such as the UAE and Saudi Arabia are among India’s largest trading partners and major sources of foreign investment. Simultaneously, Israel has become one of India’s closest partners in defence technology, agriculture, water management and innovation, whereas Iran continues to hold strategic importance due to its geographical location and energy resources.

India must also ensure that participation in I2U2 does not undermine its broader policy of strategic autonomy. While deepening cooperation with the United States, Israel and the UAE, India continues to engage actively with platforms such as BRICS, the Shanghai Cooperation Organisation (SCO) and maintain constructive relations with countries outside the I2U2 framework. This balanced approach enables India to maximise economic and strategic opportunities while avoiding entanglement in regional rivalries or bloc politics.

Consequently, the success of India’s engagement in I2U2 will depend on its ability to maintain equidistant and constructive relations with all major powers in West Asia, ensuring that economic cooperation and regional development remain the central focus of the grouping.

Implementation and Investment Challenges

Although I2U2 has announced ambitious projects in food security and clean energy, translating these commitments into tangible outcomes remains a major challenge. Large-scale initiatives such as the US$2 billion Integrated Food Parks and the 300 MW hybrid renewable energy project in Gujarat require sustained investments, effective coordination among governments, active participation of the private sector and timely regulatory clearances. Delays in financing, land acquisition, project approvals or technological collaboration could slow implementation and reduce the credibility of the grouping. Ensuring efficient execution of flagship projects is therefore essential for demonstrating I2U2’s effectiveness as a results-oriented partnership. I2U2 and India cooperation must therefore focus on timely implementation, investment mobilisation and effective project execution.

China’s Expanding Influence in West Asia

China’s expanding economic and strategic footprint in West Asia has emerged as an important geopolitical challenge for India within the I2U2 framework. Over the past decade, China has significantly strengthened its presence through the Belt and Road Initiative (BRI), large-scale infrastructure investments, energy partnerships and growing trade with countries such as the United Arab Emirates, Saudi Arabia, Iran and other Gulf nations. As China becomes an increasingly influential economic partner in the region, India faces greater competition in advancing its own strategic and economic interests.

China has also expanded its influence by investing in ports, industrial parks, logistics networks, digital infrastructure and high-technology sectors, while deepening cooperation in areas such as 5G, Artificial Intelligence (AI) and renewable energy. These developments enhance Beijing’s long-term strategic presence in a region that is vital for India’s energy security, overseas trade and maritime connectivity.

Another significant concern is China’s role in promoting alternative regional connectivity networks under the BRI. These initiatives compete with projects such as the India–Middle East–Europe Economic Corridor (IMEC), which aims to improve connectivity between India, the Middle East and Europe. A stronger Chinese economic presence may reduce the strategic space available for India and its I2U2 partners in shaping regional infrastructure and supply chains.

China has also enhanced its diplomatic profile in West Asia by playing an active role in regional affairs, including facilitating the Saudi Arabia–Iran diplomatic rapprochement in 2023. Such developments demonstrate Beijing’s growing political influence alongside its economic engagement, thereby intensifying strategic competition with other major powers.

In this context, I2U2 provides India with an important platform to offer transparent, sustainable and investment-driven alternatives in sectors such as food security, clean energy, advanced technology and connectivity. By successfully implementing high-quality projects and strengthening partnerships with the United States, Israel and the UAE, India can enhance its strategic presence in West Asia while contributing to a stable, diversified and rules-based regional order. I2U2 and India can thus help India strengthen its economic and strategic position amid China’s expanding influence.

Informal Nature of I2U2

I2U2 is an informal and project-based minilateral grouping without a formal treaty, permanent secretariat or legally binding institutional framework. While this flexible structure enables quicker decision-making and issue-based cooperation, it also poses challenges in ensuring continuity, accountability and effective implementation of long-term projects. The success of I2U2 largely depends on the sustained political commitment of member countries and active participation of the private sector. Therefore, maintaining momentum through regular high-level engagements, institutional coordination and timely execution of flagship initiatives will be crucial for the long-term credibility and effectiveness of the grouping. I2U2 and India must therefore ensure that its flexible structure translates into concrete and sustainable outcomes.

5. Recent Developments and India’s Initiatives

• Implementation of the Integrated Food Parks Project: The flagship US$2 billion Integrated Food Parks initiative remains the most significant I2U2 project for India. The UAE’s ADQ sovereign wealth fund, in coordination with the Government of Gujarat, is working on developing climate-smart food parks aimed at improving agricultural productivity, reducing food wastage, strengthening food processing and enhancing export competitiveness. I2U2 and India Relations are particularly relevant in understanding this investment-led cooperation.
• Progress in Clean Energy Cooperation: I2U2 members continue to advance the proposed 300 MW hybrid renewable energy project in Gujarat, combining solar, wind and battery energy storage. The project is expected to attract around US$330 million in investment and serve as a model for clean energy collaboration among the four countries.
• Expanding Business and Private Sector Engagement: Recognising that I2U2 is an investment-led partnership, the member countries have launched the I2U2 Business Forum and the Private Enterprise Partnership to encourage collaboration between governments and businesses. The initiative seeks to mobilise private capital, facilitate technology transfer and accelerate the implementation of joint projects.
• Cooperation in Space and Emerging Technologies: The four countries have expanded cooperation beyond food and energy by launching a joint space initiative that utilises satellite data for climate monitoring, environmental management and sustainable development. This reflects the evolution of I2U2 into a broader platform for collaboration in space, innovation, advanced technologies and digital solutions.
• Strengthening Connectivity through IMEC: Although I2U2 and the India–Middle East–Europe Economic Corridor (IMEC) are separate initiatives, I2U2 has created strategic momentum for deeper cooperation in connectivity, logistics, infrastructure and resilient supply chains. Together, these initiatives strengthen India’s role as a key economic bridge linking South Asia, West Asia and Europe, while supporting a more diversified and resilient regional economic architecture.

6. Way Forward

• Accelerate Flagship Projects: Ensure timely implementation of the Integrated Food Parks and 300 MW hybrid renewable energy project through effective coordination among governments and the private sector. I2U2 and India should focus on converting announced investments into tangible outcomes.
• Expand Cooperation in Emerging Sectors: Deepen collaboration in Artificial Intelligence (AI), semiconductors, digital technologies, space, water management, healthcare and green hydrogen to create new avenues for innovation-driven growth.
• Strengthen Regional Connectivity: Synergise I2U2 initiatives with the India–Middle East–Europe Economic Corridor (IMEC) to improve trade, logistics and resilient supply chains across Asia, the Middle East and Europe.
• Enhance Institutional Coordination: Establish regular ministerial meetings, sector-specific working groups and robust project monitoring mechanisms to ensure continuity and effective implementation.
• Preserve Strategic Autonomy: Continue India’s balanced engagement with all major countries in West Asia while leveraging I2U2 as an economic and development-oriented platform that promotes regional stability and shared prosperity. I2U2 and India can thus maximise the economic and strategic benefits of this minilateral partnership.

7. Conclusion

The I2U2 has emerged as an innovative platform of minilateral and investment-driven cooperation, enabling India to strengthen its strategic engagement with the United States, Israel and the United Arab Emirates. By promoting collaboration in food security, clean energy, technology, connectivity and infrastructure, the grouping advances India’s economic, strategic and developmental interests in West Asia. I2U2 and India therefore represent an important dimension of India’s evolving West Asia policy and economic diplomacy. With effective implementation of flagship projects and sustained diplomatic engagement, I2U2 has the potential to become a key pillar of India’s West Asia policy, economic diplomacy and vision of a stable, connected and prosperous Indo-Pacific and Middle East region.

BPSC Mains Practice Questions

1. Discuss the significance of the I2U2 grouping for India. How does it strengthen India’s strategic, economic and technological engagement in West Asia?

2. Critically examine the major challenges faced by India in the I2U2 grouping. In your answer, analyse the impact of geopolitical instability and China’s growing influence in West Asia on India’s strategic interests.

Learn More from the Ministry of External Affairs, Government of India

Readers interested in I2U2 and India, I2U2 and India Relations, India’s role in I2U2, West Asia cooperation, food security, clean energy, investment, technology and regional connectivity can visit the official website of the Ministry of External Affairs (MEA), Government of India. The MEA provides authentic information on India’s participation in I2U2, its strategic partnerships with the United States, Israel and the UAE, and India’s wider engagement with West Asia.