It was a brief visit by Prime Minister Narendra Modi to the United Arab Emirates on Friday, but it yielded big returns for New Delhi. The visit produced a series of strategic and economic gains for India, with the two countries announcing defence, energy and infrastructure agreements along with investment commitments worth billions of dollars.
The PM’s visit to Abu Dhabi came at a time of geopolitical churn in West Asia and continued uncertainty in global energy markets. Against the backdrop of the ongoing regional conflict and concerns over disruption to critical shipping routes, including the Strait of Hormuz, both sides stressed the need for stability, connectivity and economic resilience.
KEY TAKEAWAYS OF PM’S US VISIT
- Agreement on Framework for the Strategic Defence Partnership
One of the main outcomes was the signing of an Agreement on Framework for the Strategic Defence Partnership between India and the UAE. The agreement moves beyond standard military exercises to focus on the joint development and co-production of advanced defense technologies, deeper intelligence sharing, and stricter counter-terrorism cooperation.
- MoU on Strategic Petroleum Reserves
In the energy sector, India and the UAE signed a Memorandum of Understanding on Strategic Petroleum Reserves to strengthen India’s energy security amid volatile crude markets and supply disruptions linked to regional tensions. Building on their existing partnership, where Abu Dhabi National Oil Company (ADNOC) is the only foreign entity storing oil in India’s underground reserves, this agreement deepens strategic cooperation, securing a reliable energy supply for India while providing the UAE with a stable, long-term market for its expanded crude production capacity.
- Agreement on supplies of Liquified Petroleum gas (LPG)
The two sides also concluded an agreement on supplies of Liquefied Petroleum Gas, aimed at ensuring stable and long-term energy supplies to India as it seeks to secure and diversify imports and limit the impact of global price shocks on domestic consumers. The agreement was signed between Indian Oil Corporation (IOCL) and ADNOC, secures a long-term, prioritised supply of fuel from the UAE, which fulfils roughly 40 per cent of India’s domestic LPG requirements.
- MoU on setting up Ship Repair Cluster at Vadinar
The visit also saw an MoU for setting up a Ship Repair Cluster at Vadinar in Gujarat, a project expected to strengthen India’s maritime infrastructure ecosystem and support its position as a regional hub for ship maintenance and repair.
- Investment worth 5 billion
In addition, the UAE announced investments worth USD 5 billion, targeted at boosting Indian infrastructure projects, expanding credit capacity at RBL Bank, and injecting liquidity into housing financier Sammaan Capital.
The agreements, according to officials, showed how India-UAE ties were expanding beyond traditional trade and energy cooperation into defence, logistics, infrastructure and finance.
India and the UAE have emerged as major economic partners in recent years, especially after the signing of the Comprehensive Economic Partnership Agreement, which helped bilateral trade cross the USD 100 billion mark. Both countries are now targeting USD 200 billion in trade in the coming years.
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