India–UAE Set Trade Goal to $200 billion by 2032; deals on LNG, defence, and space

• India and UAE target $200 billion bilateral trade by 2032, reflecting deepening economic ties under CEPA.

• Long-term LNG deal boosts India’s energy security amid global market volatility.

• Strategic defence, space, and supercomputing cooperation signal high-tech alignment.

• Investments in Dholera SIR and GIFT City strengthen industrial and financial integration.

• Cultural and people-to-people initiatives add a strong soft-power dimension.

India and the United Arab Emirates have agreed on an ambitious roadmap to significantly scale up their economic engagement, committing to raise bilateral trade to $200 billion by 2032. The understanding was part of a broader package of commercial, strategic, and cultural initiatives announced during UAE President Sheikh Mohamed bin Zayed Al Nahyan’s one-day state visit to New Delhi.

The discussions, held between President Sheikh Mohamed and Prime Minister Narendra Modi, resulted in a series of agreements spanning energy security, defence, space cooperation, advanced computing, agriculture, and investment. Briefing reporters after the talks, Foreign Secretary Vikram Misri said the new trade target reflects the deepening and diversification of India–UAE ties, which have accelerated since the Comprehensive Economic Partnership Agreement (CEPA) came into effect. He noted that the UAE has become India’s second-largest source of liquefied natural gas, underscoring its growing importance in India’s energy mix.

Long-term energy security and defence collaboration

A major development on the energy front was the signing of a long-term LNG supply agreement between Hindustan Petroleum Corporation Limited (HPCL) and ADNOC Gas. Under the deal, India will begin receiving LNG shipments from 2028 for a duration of ten years, providing stability and predictability at a time of continued volatility in global gas markets.

Strategic cooperation was also reinforced through a Letter of Intent on a Strategic Defence Partnership. The framework signals closer coordination in defence production, technological collaboration, and the joint development of military capabilities, reflecting a shared interest in strengthening defence-industrial ties.

In the space sector, India and the UAE took steps to expand commercial and industrial cooperation. The Indian National Space Promotion and Authorisation Centre (IN-SPACe) and the UAE Space Agency signed a Letter of Intent aimed at supporting private-sector participation, joint ventures, and collaboration in space infrastructure and downstream applications.

The two countries further agreed to work together on advanced digital infrastructure, including plans to establish a supercomputing cluster in India, highlighting cooperation in high-performance computing and next-generation technologies.

Investment, finance, and trade facilitation

Investment-driven growth formed a central pillar of the agreements. A Letter of Intent between the Government of Gujarat and the UAE Ministry of Investment focuses on the development of the Dholera Special Investment Region, positioning it as a major industrial and infrastructure hub.

Strengthening financial and logistics connectivity, First Abu Dhabi Bank and global ports operator DP World announced plans to establish offices and operations in GIFT City, Gujarat. The move is expected to enhance India’s role as a regional centre for financial services and trade facilitation.

Agricultural trade also received a boost through a memorandum of understanding between India’s Agricultural and Processed Food Products Export Development Authority (APEDA) and the UAE Ministry of Climate Change and Environment. The agreement aims to streamline food safety standards and technical requirements, easing access for Indian agricultural and processed food exports to the UAE and wider Gulf region.

In addition, both sides agreed to explore cooperation in civil nuclear energy and examine the concept of “digital” or “data embassies,” signalling growing confidence in collaboration across sensitive and future-oriented domains.

Cultural ties and people-to-people exchanges

Beyond economics and security, the partnership is set to gain a stronger cultural dimension. Plans were announced to establish a “House of India” in Abu Dhabi, envisioned as a cultural centre showcasing Indian art, heritage, and archaeology. The two countries also committed to promoting youth exchanges and people-to-people engagement.

Prime Minister Modi later formally received President Sheikh Mohamed bin Zayed Al Nahyan in New Delhi, describing the visit as a reflection of the high priority the UAE leadership places on relations with India. He said he looked forward to discussions that would further strengthen the multifaceted partnership.

Overall, the outcomes of the visit point to an India–UAE relationship that is rapidly evolving beyond traditional trade in hydrocarbons. With a clear emphasis on long-term investment, advanced technology, and strategic cooperation, the partnership is being positioned as a key pillar of economic and geopolitical engagement over the next decade.