India and the UAE have set a $200 billion bilateral trade target by 2032, reinforcing ties under the CEPA framework.
A 10-year LNG supply agreement between HPCL and ADNOC Gas will begin in 2028, enhancing India’s energy security.
The two sides signed pacts covering defence manufacturing, technology transfer, space cooperation, and infrastructure investments.
India and the United Arab Emirates on Monday agreed to double bilateral trade to $200 billion by 2032, marking a significant expansion of their commercial and strategic partnership spanning trade, security, defence cooperation, space, and investment. The agreements were signed during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s one-day official visit to New Delhi.
“Committed to fostering sustainable development and economic growth, the UAE and India will continue working together to drive progress in future-focused sectors while achieving mutual benefit for our nations and peoples,” President Nahyan said in a post on X.
1 January 2026
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The three-hour engagement centred on boosting bilateral trade, with a focus on micro, small and medium enterprises (MSMEs), digital trade corridors, and market diversification. A key outcome was an investment framework for Gujarat’s Dholera region and GIFT City. The partnership includes plans for an international airport, a greenfield port, a smart urban township, railway connectivity, and energy infrastructure, according to reports.
The two leaders also discussed regional geopolitics and evolving global conditions. The visit comes amid heightened instability in West Asia, with escalating tensions in Gaza, Iran, and Yemen.
Foreign Secretary Vikram Misri said the $200 billion trade target reflects the deepening economic relationship between New Delhi and Abu Dhabi, strengthened under the Comprehensive Economic Partnership Agreement (CEPA). The UAE has emerged as India’s second-largest supplier of liquefied natural gas (LNG), Misri added.
Pacts Inked on the Energy Front
A major agreement was signed in the energy sector, with Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas entering into a 10-year Sales and Purchase Agreement. Under the deal, India will receive LNG supplies starting in 2028, providing long-term energy security amid volatile global markets.
Strategic Defence Partnership
The two sides also signed a Letter of Intent on a Strategic Defence Partnership, signalling closer cooperation in defence manufacturing, technology transfer, and capability development. The move comes as the regional security environment evolves, with Pakistan seeking to expand its strategic footprint beyond South Asia through defence diplomacy, arms exports, and military coordination in West Asia and Southeast Asia, Moneycontrol reported.
Beyond Trade and Investments
In the space sector, the Indian National Space Promotion and Authorisation Centre and the UAE Space Agency signed a Letter of Intent to promote space industry development and commercial collaboration. The agreement aims to encourage private-sector participation, joint ventures, and cooperation in space infrastructure and downstream applications.
New Delhi and Abu Dhabi also announced plans to establish a ‘House of India’ in Abu Dhabi—a cultural space to showcase Indian art, heritage, and archaeology—and to promote youth exchanges, underscoring the growing soft-power dimension of bilateral ties.
(Disclaimer: This story is being updated)
