India, UAE Sign Key Deals in Defence, Energy and Infrastructure
Prime Minister Narendra Modi’s brief 2.5-hour visit to the United Arab Emirates on Friday resulted in several major agreements and investment commitments that are expected to strengthen India-UAE ties across defence, energy, infrastructure and finance sectors.
The visit to Abu Dhabi came amid growing geopolitical uncertainty in West Asia and concerns over disruptions in global energy supply chains, especially around the Strait of Hormuz. Both countries emphasised the need for regional stability, economic resilience and stronger connectivity.
Strategic Defence Partnership Signed
One of the biggest outcomes of the visit was the signing of the Agreement on Framework for the Strategic Defence Partnership between India and the UAE.
The agreement focuses on joint development and co-production of advanced defence technologies, enhanced intelligence sharing and stronger counter-terrorism cooperation between the two nations.
Boost to India’s Energy Security
India and the UAE also signed a Memorandum of Understanding on Strategic Petroleum Reserves aimed at strengthening India’s energy security amid volatile crude oil markets.
The agreement expands existing cooperation with Abu Dhabi National Oil Company (ADNOC), which is currently the only foreign company storing crude oil in India’s underground strategic reserves.
Officials said the deal would help India secure reliable energy supplies while providing the UAE with a long-term market for its growing crude production.
Long-Term LPG Supply Agreement
The two countries also finalised an agreement for long-term supplies of Liquefied Petroleum Gas (LPG).
The agreement, signed between Indian Oil Corporation (IOCL) and ADNOC, is expected to ensure stable fuel supplies to India and reduce the impact of global price fluctuations on domestic consumers.
The UAE currently fulfils nearly 40 per cent of India’s LPG requirements.
Ship Repair Cluster to Come Up in Gujarat
Another important outcome of the visit was the signing of an MoU to establish a Ship Repair Cluster at Vadinar in Gujarat.
The project is expected to strengthen India’s maritime infrastructure and help position the country as a regional hub for ship repair and maintenance services.
UAE Announces USD 5 Billion Investment
The UAE also announced investments worth USD 5 billion in India.
The funds will be directed towards infrastructure development projects, expanding credit capacity at RBL Bank and supporting housing finance company Sammaan Capital.
India-UAE Economic Ties Continue to Grow
Officials said the latest agreements highlight how India-UAE relations are expanding beyond traditional trade and energy cooperation into sectors such as defence, logistics, finance and infrastructure.
Bilateral ties between the two nations have strengthened significantly after the signing of the Comprehensive Economic Partnership Agreement (CEPA), which helped push annual trade beyond USD 100 billion.
Both countries are now aiming to increase bilateral trade to USD 200 billion in the coming years.
