India and UAE Set New Trade and Energy Goals
India and the United Arab Emirates on Monday unveiled a roadmap to deepen defence, energy and technology ties. UAE President Sheikh Mohamed bin Zayed Al Nahyan held talks with Prime Minister Narendra Modi in New Delhi. During the meeting, both leaders agreed to finalise a strategic defence partnership. They also discussed a 10-year agreement to supply 0.5 million tonnes of LNG annually from 2028. Importantly, Modi and MBZ set a target to double bilateral trade to $200 billion by 2032. This builds on strong momentum since the CEPA agreement in 2022.
Defence Cooperation Gains Strategic Push
The two sides signed a letter of intent for a strategic defence partnership framework. The proposed agreement will expand cooperation in defence manufacturing and innovation. It will also cover training, cyber-security and counter-terrorism. Foreign secretary Vikram Misri said the move reflects the natural growth of existing ties. He added that it does not involve India in regional conflicts. Both countries reaffirmed that defence cooperation remains a core pillar of their partnership.
Innovation, Space and Nuclear Energy Take Centre Stage
Although the visit lasted only three hours, the leaders reviewed cooperation across many sectors. They identified innovation, space and civil nuclear energy as future growth areas. The two sides agreed to explore advanced nuclear technologies. These include large reactors and small modular reactors (SMRs). The decision follows India’s SHANTI nuclear energy law. Modi and MBZ also asked officials to link national digital payment platforms. This step aims to make cross-border payments faster and cheaper.
Trade, Investment and Emerging Technologies in Focus
Trade between the two countries crossed $100 billion in 2024-25. Both leaders welcomed this growth and urged businesses to scale up investments. Among the agreements signed was an LNG supply pact between HPCL and ADNOC Gas. The two sides also signed pacts on space cooperation, food safety and agricultural trade. Additionally, Modi invited UAE sovereign wealth funds to join the second NIIF Infrastructure Fund. The leaders agreed to boost cooperation in artificial intelligence and data centres. They also discussed the idea of “digital embassies” to protect sovereign data.
