Indian Prime Minister Narendra Modi will embark on a five-nation tour taking in the United Arab Emirates and Europe from May 15-20, India’s foreign ministry said in a statement on Monday, as the Middle East crisis drives up global oil prices and strains India’s foreign currency reserves.
Modi is to visit the UAE on May 15 and subsequently travel to the Netherlands, Sweden, Norway and Italy, the statement said.
The trip follows Modi urging a series of measures, including fuel conservation, fewer imports and gold purchases, as well as reduced travel, as a surge in energy prices takes a toll on the country’s foreign exchange buffers.
Indian shares fell on Monday, and the rupee endured its sharpest drop in more than a month to end at its weakest closing level on record following Modi’s call for austerity measures.
Higher oil prices are a major risk for net energy importer India, threatening to widen the country’s current account deficit, slow growth and stoke inflation.
Modi and UAE President Mohammed bin Zayed Al Nahyan will exchange views on bilateral issues, in particular energy cooperation, as well as “regional and international issues of mutual interest”, the statement said.
The European leg of the trip will be to deepen India’s trade and investment ties with these countries, following up on the India-EU trade deal agreed upon earlier this year, the statement said.
Interesting timing for Modi’s tour with oil prices soaring. Hope the UAE visit secures some stable energy deals to ease pressure on our forex reserves.
Modi urging fuel conservation and less travel while he jets off to five countries? Seems a bit hypocritical, but I guess diplomatic meetings are necessary.
The rupee hitting a record low is worrying. With oil prices up, this tour better result in concrete energy cooperation, not just photo ops.
UN, EU and India and US and UAE are central to this development. The decisions made here will have ripple effects.