New Delhi, January 20
India and the United Arab Emirates on Monday agreed to elevate their relationship through a proposed strategic defence partnership and a long term LNG supply deal, while setting an ambitious target of USD 200 billion in annual bilateral trade by 2032. The decisions were taken during talks between Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi.
The UAE President was personally received by Modi at the airport, after which both leaders travelled together to the Prime Minister’s residence. Discussions were held in both restricted and delegation level formats, covering a wide range of strategic, economic, and technological areas.
Strategic Defence Partnership Takes Centre Stage
Among the five documents signed during the visit, a letter of intent to establish a strategic defence partnership emerged as the most significant. The proposed framework aims to deepen defence industrial collaboration and expand cooperation in advanced technologies, cyber training, special operations, military interoperability, and counter terrorism.Both sides acknowledged that defence and security cooperation remains a core pillar of the comprehensive strategic partnership between India and the UAE, underpinned by mutual respect for sovereignty, territorial integrity, and strategic autonomy.
LNG Supply Agreement and Energy Cooperation
India also secured a long term LNG supply arrangement under which Hindustan Petroleum Corporation Limited will purchase 0.5 million metric tonnes of liquefied natural gas annually from Abu Dhabi National Oil Company Gas for a period of ten years starting 2028.The UAE continues to remain India’s second largest LNG supplier after Qatar. In addition, both countries agreed to explore cooperation in advanced nuclear technologies, including large nuclear reactors, small modular reactors, nuclear plant operations, maintenance, and safety systems.
Artificial Intelligence, Supercomputing, and Data Centres
Artificial Intelligence was identified as a priority area, with both sides deciding to collaborate on setting up a supercomputing cluster in India. The UAE is also expected to explore investments aimed at expanding data centre capacities across the country.The leaders further directed officials to explore the concept of establishing Digital Embassies between India and the UAE under mutually recognised sovereignty arrangements.
Trade Expansion and Digital Payments Integration
With bilateral trade having reached USD 100 billion in 2024 to 25, both leaders set a new target of USD 200 billion by 2032. To support this growth, they directed teams to work towards interlinking national payment platforms to enable faster, efficient, and cost effective cross border payments.They also called for faster implementation of initiatives such as Bharat Mart, the Virtual Trade Corridor, and Bharat Africa Setu to promote MSME products across the Middle East, West Asia, Africa, and the Eurasia region.
Space, Infrastructure, and GIFT City Development
A separate letter of intent was signed for joint development of space infrastructure, including launch complexes, satellite fabrication facilities, joint missions, training centres, and a space academy.Another agreement provides for UAE participation in the development of a special investment region in Dholera, Gujarat. Planned projects include an international airport, pilot training school, MRO facility, greenfield port, smart urban township, and related rail and energy infrastructure.
Both leaders welcomed the establishment of DP World and First Abu Dhabi Bank branches in GIFT City, reinforcing its position as an emerging international financial centre.
Food Security, Nuclear Cooperation, and Counter Terrorism
India and the UAE reaffirmed their commitment to enhancing cooperation in food security and signed an agreement on food safety to encourage agricultural and food exports from India to the UAE.The leaders also reiterated their unequivocal condemnation of terrorism in all its forms and agreed to continue cooperation under the Financial Action Task Force framework to counter terror financing and strengthen anti money laundering efforts.
Regional and Global Engagement
The two leaders reaffirmed their support for the India Middle East Europe Corridor, describing it as strategically important for enhancing trade and energy flows. Regional developments, including the situation in Yemen, Gaza, and Iran, were also discussed.The UAE President expressed support for India’s chairmanship of the BRICS grouping this year, underscoring the expanding global engagement between the two countries.
The visit marked a significant step in strengthening India UAE ties across defence, energy, technology, trade, and strategic cooperation.
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