In this image received on Jan. 19, 2026, Prime Minister Narendra Modi and UAE President Sheikh Mohamed bin Zayed Al Nahyan witness an MoU exchange in New Delhi. Foreign Secretary Vikram Misri is also seen. (Photo | PMO)
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India, UAE seal LNG deal as they eye strategic defence pact and $200 billion trade target

Foreign Secretary Vikram Misri told reporters the two sides had agreed to elevate defence cooperation to a new level after talks between PM Modi and visiting UAE President Al Nahyan.

Jayanth Jacob

NEW DELHI: India and the United Arab Emirates (UAE) on Monday agreed to deepen their strategic partnership, setting an ambitious target of doubling bilateral trade to $200 billion within six years, as well as securing an LNG deal and moving towards the signing of a formal Strategic Defence Partnership agreement in the near future.

The decisions were announced after talks between Prime Minister Narendra Modi and visiting UAE President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi, underscoring the expanding scope of ties spanning trade, defence, energy, infrastructure and emerging technologies.

“Went to the airport to welcome my brother, His Highness Sheikh Mohamed bin Zayed Al Nahyan, President of the UAE. His visit illustrates the importance he attaches to a strong India-UAE friendship. Looking forward to our discussions,” Modi said in a post on X ahead of the meeting.

Foreign Secretary Vikram Misri told reporters the two sides had agreed to elevate defence cooperation to a new level. “India and the UAE will be signing a Strategic Defence Partnership Framework Agreement in the near future,” he said, adding that discussions covered defence industrial collaboration, advanced technologies, training and interoperability.

The visit comes at a sensitive moment in West Asia, with US President Donald Trump preparing to roll out Phase II of the Gaza Peace Plan, lending added geopolitical significance to the high-level engagement between New Delhi and Abu Dhabi.

A joint statement issued after the talks said the two leaders welcomed the “robust growth” in trade following the signing of the Comprehensive Economic Partnership Agreement (CEPA) in 2022.

Bilateral trade reached $100 billion in FY 2024–25, and both sides agreed to double the figure to $200 billion by 2032. “Buoyed by the enthusiasm of the business communities on both sides, they decided to double bilateral trade,” the statement said.

The leaders also directed their teams to strengthen linkages between micro, small and medium enterprises (MSMEs).

They called for the speedy implementation of initiatives such as Bharat Mart, the Virtual Trade Corridor and the Bharat-Africa Setu to promote MSME products across West Asia, Africa and Eurasia.

Several agreements and Letters of Intent were finalised during the visit.

A key energy pact saw Hindustan Petroleum Corporation Ltd (HPCL) sign a 10-year sales and purchase agreement with ADNOC Gas for the supply of 0.5 million metric tonnes per annum of liquefied natural gas, beginning in 2028. Misri described the deal as an important step in strengthening India’s long-term energy security.

In a major investment push, the government of Gujarat and the UAE Ministry of Investment agreed to pursue cooperation for the development of the Dholera Special Investment Region. The proposed partnership includes UAE participation in building an international airport, a greenfield port, railway connectivity, energy infrastructure, a smart urban township, and aviation facilities such as a pilot training school and an aircraft maintenance, repair and overhaul (MRO) centre.

The two countries also signed a Letter of Intent in the space sector between IN-SPACe and the UAE Space Agency to promote joint infrastructure development and commercial collaboration. This includes launch complexes, manufacturing and technology zones, incubation centres for start-ups, training institutes and exchange programmes.

Another memorandum of understanding between India’s APEDA and the UAE Ministry of Climate Change and Environment aims to streamline food safety and technical standards, boost Indian agricultural exports and support the UAE’s food security needs.

This is Sheikh Mohamed’s third official visit to India since assuming office as UAE President and his fifth visit in the past decade, reflecting sustained momentum in India-UAE relations.

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