I2U2 summit unveils $2 bn initiative to develop food parks across India

The first summit of the four-nation grouping “I2U2” on Thursday (July 14) announced an investment of $2 billion to develop a series of integrated food parks across India and set up a 300-megawatt hybrid renewable energy project in Gujarat, signalling a near-and-long-term strategic partnership to address challenges in specific areas.

At the virtual summit, Prime Minister Narendra Modi, US President Joe Biden, Israeli Prime Minister Yair Lapid and the UAE’s President Mohammed bin Zayed Al Nahyan largely focused on joint investments and new initiatives in six specific areas of water, energy, transportation, space, health and food security.

A joint statement by the four leaders said the United Arab Emirates (UAE) will invest $2 billion to develop a series of integrated food parks across India, incorporating state-of-the-art climate-smart technologies to reduce food waste, conserve fresh water and employ renewable energy sources.

Though Biden and Lapid referred to the crisis in Ukraine in their opening remarks, Modi and Al Nahyan highlighted the overall agenda of the grouping and how it could translate into economic prosperity. There was no mention of the Ukraine crisis in the joint statement as well.

‘Positive’ agenda

In his opening remarks, Modi said the “I2U2” has established a “positive” agenda at its first summit itself and that it would make an important contribution in the areas of energy security, food security and economic growth.

“It is clear that the vision and agenda of I2U2 is progressive and practical. By mobilising the mutual strengths of our countries – capital, expertise and markets – we can accelerate our agenda and contribute significantly to the global economy,” the prime minister said.

Addressing the I2U2 Summit. https://t.co/5xIZtVIyXh

— Narendra Modi (@narendramodi) July 14, 2022

“Our cooperative framework is also a good model for practical cooperation in the face of increasing global uncertainties,” he added.

In his televised comments, Biden said the UAE’s investment to develop integrated agricultural parks across India with the support of American and Israeli private sector experts has the potential to sustainably increase India’s food yields by “threefold in just five years”.

Biden also noted that the global challenges demand new ways of working together and even mentioned the “growing food insecurity and volatile energy markets made worse by Russias brutal and unprovoked attack against its neighbour, Ukraine”.

The formation of the grouping, known as “I2U2” with “I” standing for India and Israel and “U” for the US and the UAE, is largely seen as a strategic attempt by the United States to check China’s increasing influence in Asia and the Middle East.

On the food park project, the joint statement said India will provide appropriate land for it and facilitate farmers’ integration into the food parks.

“The US and Israeli private sectors will be invited to lend their expertise and offer innovative solutions that contribute to the overall sustainability of the project. These investments will help maximise crop yields and, in turn, help tackle food insecurity in South Asia and the Middle East,” it said.

Foreign Secretary Vinay Kwatra told a media briefing that the effort will be to shape the project in a manner that benefits the small and marginal farmers.

He said the objectives of the project include reducing trade barriers between the economies of the four countries and harmonising the food safety and quality standards, adding that the initial list identified for the project includes banana, potato, rice, spices and onions.

‘Not a philanthropic group’

In his remarks, Lapid said, “This is not a philanthropic group. We want to change the world for the better, but we are also creating relative advantages for our countries, for our businesses, for our science sector.”

The president of the UAE said “our whole team will be a model for those who desire peace and prosperity and will provide evidence for the great opportunity…squandered by blind extremism at the expense of people eager to live a good life”, in comments seen as directed at Iran.

The joint statement mentioned that the “I2U2” group will advance a hybrid renewable energy project in Gujarat consisting of 300 megawatts of wind and solar capacity, to be complemented by a battery energy storage system.

The US Trade and Development Agency funded a feasibility study for the $330 million project and the UAE-based companies are exploring opportunities to serve as critical knowledge and investment partners.

“The first two projects that we are tackling together on food security and clean energy are designed to take on two of the most urgent crises affecting people around the globe,” Biden said.

He further added: “India is a major, major food producer in the world.  Think of the beneficial impacts this (food parks project) will have on India’s farmers and the people suffering from hunger and malnutrition in the region.”

The joint statement said the “unique grouping of countries aims to harness the vibrancy of our societies and entrepreneurial spirit to tackle some of the greatest challenges confronting our world, with a particular focus on joint investments and new initiatives in water, energy, transportation, space, health, and food security.”

Food security crisis

It said the “I2U2” leaders’ meeting focused on the food security crisis and clean energy and discussed innovative ways to ensure longer-term, more diversified food production and food delivery systems.

The leaders expressed their determination to leverage well-established markets to build more innovative, inclusive and science-based solutions to enhance food security and sustainable food systems.

“Israel and the United States intend to work with the UAE and India to highlight private sector opportunities. Indian companies are keen to participate in this project and contribute to Indias goal of achieving 500 GW of non-fossil fuel capacity by 2030,” the statement said.

It said such projects have the potential to make India a global hub for alternate supply chains in the renewable energy sector.

The “I2U2” grouping was conceptualised during a meeting of the foreign ministers of the four countries held on October 18 last year.

“We reaffirm our support for the Abraham Accords and other peace and normalisation arrangements with Israel. We welcome the economic opportunities that flow from these historic developments, including for the advancement of economic cooperation in the Middle East and South Asia,” the statement said.

The “I2U2” also welcomed other new groupings of countries such as the Negev Forum for regional cooperation that recognise the unique contributions of each partner country, including Israel’s ability to serve as an innovation hub.

The leaders also welcomed India’s interest in joining the US, the UAE and Israel in the Agriculture Innovation Mission for Climate initiative (AIM for Climate).

“They affirmed that these are only the first steps in a long-term strategic partnership to promote initiatives and investments that improve the movement of people and goods across hemispheres, and increase sustainability and resilience through collaborative science and technology partnerships,” the joint statement said.