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India and UAE Strengthen Ties, Aim to Double Trade to $200 Billion by 2032
India and the United Arab Emirates have finalized a series of strategic agreements aimed at doubling bilateral trade to $200 billion by 2032, marking a significant expansion of their economic partnership.
UAE President Sheikh Mohamed bin Zayed Al Nahyan met with India’s Prime Minister Narendra Modi in New Delhi on Monday for discussions centered on strengthening cooperation across multiple sectors including trade, energy, defense, and emerging technologies.
“The meeting reaffirmed the comprehensive strategic ties that have expanded significantly over the past decade,” India’s Foreign Secretary Vikram Misri told reporters following the high-level talks.
The economic relationship between India and the UAE has flourished in recent years, gaining considerable momentum after the two nations signed a comprehensive economic partnership agreement in February 2022. That agreement reduced tariffs and expanded market access for goods and services, helping bilateral trade surpass $100 billion since implementation.
Among the new agreements, India signed a pact to import 0.5 million metric tons of liquefied natural gas annually for 10 years starting in 2028 from the UAE. This deal comes at a critical time as India seeks to diversify its energy sources amid global supply uncertainties and growing domestic demand.
The countries also concluded a letter of intent for a strategic defense partnership framework agreement, signaling deeper military cooperation. Additional deals were struck in the space and food sectors, broadening the scope of bilateral engagement beyond traditional areas of trade and energy.
The UAE has also pledged an unspecified amount of investment in Gujarat, Modi’s home state, for the development of a special investment region. This project will include significant infrastructure developments such as airports, ports, and smart urban townships, potentially transforming the region into a major economic hub.
This high-profile visit takes place against a backdrop of heightened tensions in the Middle East, particularly following recent developments involving Iran and the ongoing conflict in Gaza. The timing underscores the strategic importance both nations place on maintaining stable relations amid regional uncertainty.
“India-UAE relationship is warm, growing and multifaceted. In the context of turmoil in West Asia, and how the Trump administration’s plan for Gaza is shaping up, and the crisis with Iran, it’s a moment for both nations that want stability in the region to exchange notes,” said Harsh Pant, vice president of foreign policy at the New Delhi-based think tank Observer Research Foundation.
The meeting follows U.S. President Donald Trump’s invitation last Friday for Modi to join the Board of Peace on Gaza. While Indian authorities have not yet commented on whether the invitation has been accepted, Modi has previously expressed willingness to help bring the conflict to an end.
Simmering tensions between Saudi Arabia and the UAE over Yemen add another layer of complexity to the regional diplomatic landscape, making India’s balanced approach to West Asian politics increasingly important.
For India, deepening ties with the UAE represents a crucial pillar in its Middle East strategy. The Gulf nation hosts approximately 3.5 million Indian expatriates who contribute significantly to remittance flows back to India. The UAE is also a major source of foreign direct investment into India, with investments spanning real estate, retail, and infrastructure.
As India navigates an increasingly complex geopolitical landscape, maintaining close engagement with key regional partners like the UAE has become a cornerstone of its foreign policy. Both nations share concerns about regional stability and economic growth, creating natural alignment in their strategic objectives despite the turbulent regional context.
The agreements signed Monday reflect a mutual commitment to elevate bilateral relations to new heights while navigating the challenges of a rapidly evolving global order.
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14 Comments
I’m curious to see how India and the UAE will work to achieve the $200 billion trade target. Identifying new areas of collaboration will be key.
Agreed. Closer coordination on issues like supply chains, infrastructure, and innovation could help drive this ambitious trade goal.
The expansion of the India-UAE economic relationship is noteworthy, especially after the 2022 trade agreement. Boosting energy, technology, and other sectors will be mutually beneficial.
Strengthening economic and strategic ties between India and the UAE is an important development. Expanding trade and cooperation in areas like energy, defense, and technology can benefit both countries.
Agreed. The goal of doubling bilateral trade to $200 billion by 2032 is ambitious but achievable if the partnership continues to grow.
The India-UAE relationship has come a long way. Elevating it to a ‘comprehensive strategic partnership’ signals the importance both countries place on the relationship.
Absolutely. Deepening cooperation in defense, emerging tech, and other areas will be crucial going forward.
This partnership is significant not just for India and the UAE, but for the broader region as well. Enhancing stability and economic integration could have far-reaching implications.
Agreed. Deepening ties between these two major economies has the potential to shape the geopolitical dynamics of the Middle East.
This partnership comes at a crucial time as regional tensions remain high. Deepening cooperation on security and defense could enhance stability in the region.
Diversifying economic and strategic ties is prudent for both India and the UAE given the geopolitical dynamics in the Middle East.
The India-UAE relationship is an important one to watch. Strengthening economic, strategic, and people-to-people ties will be crucial for both countries going forward.
Doubling trade to $200 billion by 2032 is an ambitious but achievable goal. The economic complementarities between India and the UAE are substantial.
Strengthening ties with a strategic partner like the UAE is a smart move for India as it navigates a complex geopolitical landscape. This partnership could have broader regional implications.