Modi, UAE President Seal Defence, LNG Deals, Aim for $200 Billion Trade by 2032
Modi, UAE President Ink Defence, LNG Pacts, Target $200B Trade

Modi Hosts UAE President for Crucial Talks in New Delhi

Prime Minister Narendra Modi welcomed United Arab Emirates President Sheikh Mohamed bin Zayed Al Nahyan to his residence at 7, Lok Kalyan Marg in New Delhi on Monday. The meeting lasted for three and a half hours, covering a broad spectrum of bilateral issues. Following their discussions, both leaders expressed strong sentiments about the visit.

Modi posted on social media platform X that he felt deeply touched by the UAE President's gesture of visiting Delhi in the evening. He stated they discussed a wide range of topics aimed at further strengthening the multifaceted friendship between India and the UAE. The UAE President also shared his pleasure in meeting Modi to explore opportunities for enhancing the deep-rooted and historical ties of cooperation between the two nations.

Key Agreements and Outcomes Announced

The leaders finalized five agreements and seven key outcomes during their meeting. These include:

  • A framework pact on defence cooperation.
  • A joint initiative on space exploration.
  • A target to double bilateral trade to $200 billion by 2032.
  • Cooperation in artificial intelligence and partnership on small nuclear reactors.
  • Establishment of a super-computing cluster in India.
  • A 10-year liquefied natural gas (LNG) supply agreement.

Foreign Secretary Vikram Misri described the visit as extremely substantive. He emphasized that India's defence engagement with the UAE does not imply involvement in regional conflicts, such as potential tensions between the UAE and Saudi Arabia over Yemen. Misri highlighted the existing significant defence cooperation between the two countries.

Defence and Security Cooperation Strengthened

A joint statement released after the meeting underscored the deep respect for each other's sovereignty and territorial integrity. It acknowledged the steady and strong bilateral defence and security cooperation as a core pillar of the Comprehensive Strategic Partnership. The leaders welcomed recent exchanges of visits by service chiefs and successful military exercises. They also noted the signing of a Letter of Intent towards concluding a Strategic Defence Partnership.

Economic and Energy Partnerships Expanded

On the economic front, the leaders welcomed a 10-year LNG Supply Agreement between Hindustan Petroleum Corporation Limited and ADNOC Gas. This deal will deliver 0.5 million tonnes of LNG per year starting in 2028, making the UAE India's second-largest LNG supplier.

The two sides agreed to explore cooperation in advanced nuclear technologies, including the development of large reactors and Small Modular Reactors. They also discussed setting up a digital or data embassy and interlinking national payments platforms to promote trade.

The joint statement highlighted the robust growth in trade since the signing of the Comprehensive Economic Partnership Agreement in 2022. Bilateral trade reached $100 billion in the 2024-25 fiscal year. The leaders decided to target doubling this to $200 billion by 2032, buoyed by enthusiasm from business communities on both sides.

Counter-Terrorism and Regional Issues Discussed

Both leaders reiterated their unequivocal condemnation of terrorism in all its forms. They emphasized that no country should provide safe haven to those who finance, plan, support, or commit terrorist acts. They agreed to continue cooperation within the Financial Action Task Force framework to counter terror financing and strengthen anti-money laundering efforts.

Regional issues were also on the agenda. The leaders discussed the situations in Yemen and Iran, as well as the Gaza peace plan. They expressed support for efforts to promote peace, security, and stability in the region.

Additional Initiatives and Protocol Highlights

Other announcements included the establishment of a 'House of India' in Abu Dhabi, setting up offices of UAE companies First Abu Dhabi Bank and DP World at GIFT City in Gujarat, and signing a Letter of Intent on Investment Cooperation for developing the Dholera Special Investment Region.

Modi and the UAE President directed their teams to work towards interlinking national payment platforms for efficient cross-border payments. They called for expediting initiatives like 'Bharat Mart', 'Virtual Trade Corridor', and 'Bharat-Africa Setu' to promote MSME products across various regions.

In a gesture highlighting the visit's importance, Modi personally received the UAE President at the Delhi airport. This marks the second time Modi has done so after December 2024. External Affairs Minister S. Jaishankar also saw off the UAE President at the airport, an honour accorded to few visiting leaders.

The meeting took place against a backdrop of escalating tensions between Saudi Arabia and the UAE over Yemen. For India, the UAE's outreach is significant as Delhi seeks to better understand developments in Gaza and regional rivalries.