India and the United Arab Emirates have agreed to significantly expand their economic and strategic relationship, announcing a long-term liquefied natural gas supply deal alongside a pledge to double bilateral trade to $200bn by 2032.
The agreements were finalised during a brief visit to New Delhi by UAE President Sheikh Mohamed bin Zayed Al Nahyan, where he held talks with Indian Prime Minister Narendra Modi. State-owned energy companies from both countries signed a 10-year contract under which Abu Dhabi National Oil Company will supply liquefied natural gas worth up to $3bn to India’s Hindustan Petroleum Corporation, beginning in 2028.
Indian officials said the deal would make India the UAE’s largest LNG customer within the next decade, accounting for roughly a fifth of Abu Dhabi’s LNG exports by 2029. The agreement is part of a broader effort by New Delhi to secure long-term energy supplies while reducing exposure to volatility in global markets.
Trade between the two countries has expanded rapidly in recent years, reaching $100bn in the 2024–25 financial year following the signing of a Comprehensive Economic Partnership Agreement in 2022. The UAE is currently India’s third-largest trading partner, after the United States and China, while India is the Gulf state’s second-largest trading partner overall.
Beyond commerce and energy, the two leaders discussed defence cooperation, nuclear energy development and regional security. A joint statement referred to collaboration on nuclear safety and the development of large-scale nuclear reactors, as well as continued coordination through military exercises and exchanges between security officials.
The talks also covered developments in West Asia, including the conflicts in Gaza and Yemen, and unrest in Iran. Both sides reiterated opposition to terrorism “in all its forms”, language that reflects India’s long-standing concerns over cross-border militancy.
The timing of the agreement highlights India’s efforts to diversify its economic partnerships. Exports to the United States have come under strain following the imposition of steep tariffs on Indian goods, prompting New Delhi to accelerate trade negotiations with other partners, including the UK, Oman and New Zealand.
Analysts say the UAE relationship has evolved into one of India’s most reliable strategic partnerships in the region. Regular high-level engagement, they note, now reflects a degree of political trust that goes beyond transactional trade.
For Abu Dhabi, closer ties with India reinforce its strategy of expanding influence eastward, balancing longstanding relationships in the Gulf with deeper engagement in Asia’s fastest-growing major economy.